Mixed response to Budget
"LAST month’s Budget Statement, in which the Chancellor reaffirmed his intention to introduce an aggregates tax but indicated a willingness to explore ways of reducing the tax burden on the more environmentally friendly operators, drew a mixed response from the industry’s trade organizations."
"Simon van der Byl, director general of the Quarry Products Association, said he remained convinced that the Government’s current aggregates tax proposals would be environmentally ineffective and economically damaging."
But he said it was encouraging that the Government had listened to the QPA’s concerns that any aggregates tax must include a tax incentive for operators with high environmental standards.
"‘If the tax must go ahead the QPA will work towards the development of a tax framework which rewards good environmental performance,’ he said."
"‘With a similar level of commitment from the Government, we are sure that such a scheme can be developed, but our major concern is that the Treasury Statement in the Red Book is already highlighting potential difficulties rather than focusing on opportunities to work in partnership to improve the tax."
‘We will be seeking a more positive outlook than this if the tax is to generate any environmental benefits.’
"The British Aggregates Association responded to the Budget with the announcement that, if necessary, it was prepared to take the Government to court over the aggregates tax."
"Robert Durward, director of the BAA, said: ‘Despite growing cross-party opposition, the Government has shown no intention of scrapping or even modifying this controversial tax. We are not impressed by the Chancellor’s statement that the Government is ‘attracted in principal’ to introducing a differential rate for aggregates with the lowest environmental costs.’"
"He said it was generally accepted that there was no robust method of differentiating between different aggregates for taxation purposes, and that an enormous amount of bureaucracy would be required to administer any such scheme."
"And he added that while the BAA had no wish to engage its biggest customer [the Government] in damaging legal action, it had emerged that the tax could be challenged under various aspects of EC law."
"Mr Durward later confirmed that the BAA had lodged papers to this effect with a leading London QC, signifying the Association’s determination to prevent the Government imposing the tax."
"Meanwhile, Michael Ankers, chief executive of the Construction Products Association, claimed the Chancellor’s Budget Statement contained ‘little we didn’t already know about’."
"He said the Chancellor had done little more than confirm announcements made in his Pre-Budget Report and that, instead of building on these, his only concession was an indication that he would explore ways of reducing the aggregates tax burden on the more environmentally friendly operators."
"However, Mr Ankers said the CPA was encouraged by the positive outlook the Chancellor presented for the economy as a whole over the next few years."
"‘Against this background the Government has no excuse for not delivering the significant increases in investment in the built environment announced in last year’s Comprehensive Spending Review,’ he said."
