At its meeting of 3 February 2026, the Finance and Public Administration Committee considered the Scottish Aggregates Tax (Applicable Rate of Tax) Regulations 2026 [draft].

The report summarises the Committee’s consideration of the instrument.

The Policy Note¹Policy Note. (2026). Retrieved from https://www.legislation.gov.uk/sdsi/2026/9780111064856/pdfs/sdsipn_9780111064856_en_001.pdf explains that the instrument “specifies the first applicable rate of Scottish Aggregates Tax, as announced in the Scottish Budget 2026-27”. 

The instruments sets, from 1 April 2026, the applicable rate of Scottish Aggregates Tax (SAT) at £2.16 per tonne of taxable aggregate.  

The Policy Note states that several impact assessments have been carried out. The impact assessments have not highlighted any unintended consequences.  

No Business and Regulatory Impact Assessment has been prepared “as no impact upon business, charities or voluntary bodies is foreseen”.  

The Policy Note highlights that the Scottish Government has consulted “on the proposed administration regulations for SAT, including draft SSIs”.  

The SFC forecasts²Scottish Fiscal Commission. (2026). Scotland’s Economic and Fiscal Forecasts. Retrieved from https://fiscalcommission.scot/wp-content/uploads/2026/01/Scotlands-Economic-and-Fiscal-Forecasts-January-2026-revised-13-01-2026.pdf that SAT will raise £42 million in 2026-27.  

The DPLR Committee considered the instrument on 20 January 2026 and reported on it in its 8th Report, 2026¹Delegated Powers and Law Reform Committee. (2026). Subordinate Legislation considered by the Delegated Powers and Law Reform Committee on 20 January 2026. Retrieved from https://bprcdn.parliament.scot/published/DPLR/2026/1/22/417c5717-0e57-478f-a795-2ccc638b0809/DPLRS062026R8.pdf. The DPLR Committee made no recommendations in relation to the instrument. 

At its meeting on 3 February 2026, the Committee took evidence on the instrument from the Ivan McKee MSP, Minister for Public Finance (‘the Minister’) and Scottish Government officials.

In his opening statement the Minister set out the Scottish Government’s reasons for the laying of the instrument.

 The Members discussed with the Minister why the SAT rate mirrors the English Aggregates Levy rate. The Minister explained that aligning the rates allows the Scottish Government to establish an accurate baseline for determining the Block Grant Adjustment.

The Minister indicated that the rate of SAT may diverge from the English Aggregates Levy rate in the future.

Following questions, the Minister moved the following motion—

S6M-20364¹Scottish Parliament. (2026). S6M-20364. Retrieved from https://www.parliament.scot/chamber-and-committees/votes-and-motions/S6M-20364 - That the Finance and Public Administration Committee recommends that the Scottish Aggregates Tax (Applicable Rate of Tax) Regulations 2026 [draft] be approved.