Treasury undecided about aggregates tax rise

Building firms are still waiting to hear if a campaign to suspend this year's aggregates tax has been successful.

The rate is due to go up by 5p to £2 on 1 April, but aggies firms have been lobbying the Treasury to see if the latest hike can be put off.

Simon van der Byl, the executive director of the Mineral Products Association (MPA), formerly the Quarry Products Association, wrote to exchequer secretary Angela Eagle last month asking for a reprieve on this year's planned increase.

But the Treasury has still not decided whether it will hold off implementing this year's 2.6% rise, which will rake in an extra £10m in tax.

MPA economics director Jerry McLaughlin said: "We can't afford it and neither can our customers. It's simply not the right time to load companies with extra costs."

A Treasury spokeswoman said no decision on whether the increase would be made or not had been taken.

Meanwhile, the British Aggregates Association is set to advise its members to withhold paying the tax in the future following a legal battle in the European Court of Justice.