Measure

Aggregates Levy rates

The measure

The government will freeze the Aggregates Levy rate in 2023-4.

The government will legislate in the Finance Bill 2023-24 to increase the Aggregates Levy rate from 1 April 2024 in line with RPI. The rate will increase from £2.00 per tonne to £2.03 per tonne on 1 April 2024.  

 

Who will be affected?

Businesses that are registered for Aggregates Levy, and other parties in the supply chain that are likely to bear the tax cost as part of their contractual arrangements.

 

When will the measure come into effect?

From 1 April 2024. 

Our view

The rate increase is neither unexpected nor unusual. Affected businesses will however have to consider the impact on their operations, given the capacity for the tax present an absolute cost where tax relief or exemption is not available.