New tax set to commence: Supporting Scotland's circular economy agenda

A new devolved tax with the circular economy at its heart is set to be introduced

The Scottish Aggregates Tax will align with the Scottish Government's wider ambitions to support the circular economy and drive towards net zero by promoting circular construction practices, encouraging the use of recycled materials and supporting innovation in alternative materials.

A formal handover of powers between the Scottish and UK Governments has been agreed, and the Scottish Aggregates Tax will replace the UK Aggregates Levy from 1 April 2026 in Scotland. The tax will apply to the commercial exploitation of primary aggregates such as crushed rock, gravel and sand.

Ahead of planned introduction, Public Finance Minister Ivan McKee visited the Tillicoultry Quarries site in Harthill to discuss the aggregates industry in Scotland.

Mr McKee said:

“The extraction and production of aggregates like crushed rock and sand creates and supports jobs, including many in our rural communities and provides material for housing, energy infrastructure, construction, and road building.

“This new tax will increase both the number of devolved taxes and the proportion of the Scottish Budget which is directly raised in Scotland, whilst complementing other measures to support our ambitions for a fair, green and growing economy.”