But, WRAP has said the Chancellor made the right decision to keep the aggregates levy at 1.60 a tonne.
The Budget saw Chancellor Gordon Brown freezing the aggregates levy and the climate change levy, as well as keeping to the planned Landfill Tax increase of 1 to 15 a tonne (see letsrecycle.com story).
Responding to the Budget's environmental credentials, Mr Baker said: “We are still using up our environmental capital faster than ever before. There are no proper incentives to minimise waste or encourage reuse, to rule out new incinerators, or to reduce the relentless growth of traffic.
“We need a new approach to taxation, by introducing an environmental incentive mechanism which makes the polluter pay,” he added.
WRAP – the Waste and Resources Action Programme -.was unsurprised at the Chancellor's decision to freeze the aggregates levy, saying it was too early for an increase in charges imposed on quarried materials.
The government-funded market development agency funds its aggregates recycling programme through the aggregates levy, aiming to increase the use of secondary and recycled building materials
Right level
Speaking to letsrecycle.com, Ray Georgeson, director of policy for WRAP said: “We are not surprised that the levy has stayed where it is for this year. It is still broadly at the right level to have the change the government is looking for.”
The Quarry Products Association welcomed the Budget's freezing of the levy, but said it did not believe the government is doing enough to assess the environmental impact of the levy.
The Office of the Deputy Prime Minister is currently undertaking its first survey to assess the impact of the levy in 2003, but the results are not expected until September this year.
The government should wait to see the results of this survey before the aggregates levy is increased, said Mr Georgeson. But, he pointed out that WRAP has already made some progress in its aggregates programme, especially in the higher value products market.
The quarry industry, however, still maintains that the government is not doing enough to assess the impact of the levy. Jerry McLauglin, economist at the QPA, said: “They say it has been successful but they haven't validated these comments. There doesn't appear to be any form of assessment.”
The Budget's 57% increase in duty on red diesel is also expected to have a big affect on quarry companies' off-road transport, Mr McLaughlin said.
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