The Aggregates Levy was introduced by the Finance Act 2001 and came into force on 1 April 2002. The levy is a tax on the extraction of aggregates (sand and gravel) which is then used to bring about environmental benefits that mitigate the damage such extraction might cause.

The Aggregate Levy Sustainability Fund (ALSF) is being financed by some of the revenue arising from the levy. The ALSF is intended to reduce damage to the environment from extracting aggregates such as sand, stone and gravel used in construction by:

• Improving areas where aggregate extraction has taken place;

• Helping to reduce demand for aggregates through

• research, recycling and re-use;

• Promoting new methods of extracting and moving aggregates.

• To begin with the fund will run from 2002-2004.

Areas that are, or have been, affected by aggregates extraction, are to benefit from grants distributed by The Countryside Agency, English Nature and English Heritage. English Heritage will concentrate on the historic environment, including archaeological sites and landscapes. Grants are to be distributed in consultation with local authorities, interest groups and the aggregates industry.

English Heritage has highlighted a need to understand better the historic environment of areas rich in aggregates both on land and underwater, to develop predictive modelling for the benefit of the aggregates industry and planning authorities, and to improve decision making.