Defra Commitment to Levy Fund Welcome, But Further Reductions
Evident
QPA, the principal trade body for the quarry products sector,
has expressed relief that Defra has at last confirmed that the
Aggregates Levy Sustainability Fund (ALSF) will be maintained
for the next three years. The future of the fund had been uncertain
since the previous scheme finished in March 2008, in spite of
the 22% increase in the aggregates levy rate implemented in April
2008.
The major change in the allocation of ALSF funds is the introduction
of a specific carbon reduction focus, as proposed by the QPA,
but our welcome for this development and the future of the ALSF
in general is tempered by wider concerns about the value and use
of the fund.
Specifically, the original ALSF allocation in England was £29.3
million pa, but largely due to Defra diverting funds for other
purposes and the difficulty in carrying over funds from one year
to the next, the fund was significantly underspent in its first
six years. The Defra consultation on the future of the levy released
at the end of January proposed a disappointing £24 mil pa
allocation for the three years 2008/9 to 2010/11, but included
within this was a £3 million contingency, so that only £21
million was identified for specific expenditure areas.
The Defra announcement this week includes specific allocations
for just £19 million in 2008/9, rising to £20.8 million
in 2010/11. Part of the reason for the low 2008/9 allocation is
that the process of consultation and Defra review was so delayed
that spending decisions are only now being announced - with four
months of the year already gone.
Taking account of the significant increase in the value of aggregates
levy revenue likely this year (c. £70 million) following
the 22% levy increase in April 2008, the fact that Defra has not
increased the level of funding going back into local communities
through the ALSF is particularly disappointing.
QPA Director General Simon van der Byl said: "While we have
concerns about the level of funding and some distribution issues,
we want to be positive and work with the distributing bodies to
help ensure that the fund is used in the most productive way over
the next three years, particularly within communities around our
operations."
ENDS
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