The vast contribution of quarried construction materials to the Scottish economy has been highlighted in the findings of a new study published this week.

In the first report of its kind, The Economic Contribution of Primary Aggregates in Scotland reveals the scale and strategic importance of the quarried materials sector to the country’s prosperity, at a time when the industry prepares for the introduction of the new Scottish Aggregates Tax in April 2026.

Commissioned by the Mineral Products Association Scotland (MPAS) which represents producers of crushed rock, gravel and sand, the study shows that in 2024 the sector generated £450 million Gross Value Added (GVA) and supported 4,930 Scottish jobs.

Edinburgh-based consultancy BiGGAR Economics who conducted the study also report that the industry generated £99.1 million in tax contributions in Scotland, including £60 million from the existing UK Aggregates Levy.

Accounting for the biggest flow of materials by volume in Scotland’s economy, primary aggregates are those quarried from naturally occurring mineral deposits and used for the first time, supplemented where readily available by recycled materials arising from demolition and excavation, such as crushed concrete.

The report highlights that Scotland produces around 22 million tonnes of crushed rock and 5 million tonnes of sand and gravel each year, accounting for nearly one-fifth of UK production.

With GVA per head at £113,850, productivity in the aggregates sector is significantly above the Scottish average of £74,420, reinforcing its role as a high-value, high-productivity industry that anchors employment in rural communities. Local supply also helps retain spending and tax revenues within Scotland, avoiding the carbon emissions and cost impacts of long-haul imports such as steel.

More than 100 delegates attended a recent launch event at Prestonfield House, Edinburgh, including senior officials from the Scottish Government, Revenue Scotland, Scottish Renewables, Transport Scotland, Crown Estate Scotland, the University of Dundee and the RSPB.

Speaking at the event, Daniel Johnson MSP, Shadow Cabinet Secretary for Economy, Business and Fair Work, said: “It’s vital that we recognise the fundamental role of the aggregates industry as a key enabler of infrastructure and growth in the Scottish economy. Hewn from the earth here in Scotland, these materials literally form the foundations and the fabric of our built environment, underpinning housing, public services, transport, and renewable energy developments such as grid upgrades and offshore wind. The Scottish Government must work with the industry to ensure a predictable regulatory environment.”

Alan Doak, Director of MPA Scotland, said: “The findings in this report provide strong evidence as to the importance of the primary aggregates industry to Scotland’s infrastructure, economy and net zero ambitions. The forthcoming Scottish Aggregates Tax, which is only the third devolved tax to transfer from the UK Government, following Landfill Tax and Land & Buildings Transaction Tax, and future policy and fiscal decisions need to be informed by robust evidence and dialogue with producers to prevent another great Scottish manufacturing sector from being crushed whilst economic opportunities are lost.

“Crucially, there’s a misconception that Scotland has a readily available source of recycled materials waiting to be tapped into and – whilst the industry recycles whatever it can – there is a limited quantity of recycled aggregate available. We need a balanced, data-driven approach to ensure Scotland’s construction industry is properly supplied with the essential aggregates.”

MPA Scotland continues to advocate for the establishment of a Scottish Minerals Forum to ensure the Scottish Government works collaboratively with the sector to plan future supply and manage the transition to the new tax regime whilst delivering for the needs of the Scottish economy.

The full BiGGAR Economics report, The Economic Contribution of Primary Aggregates in Scotland, is available at mpascotland.org.

ENDS

Notes for Editors

Photo caption: Daniel Johnson MSP, Shadow Cabinet Secretary for Economy, Business and Fair Work, speaking at the launch of The Economic Contribution of Primary Aggregates in Scotland report. (Credit - David Cheskin)

About the Mineral Products Association:

The Mineral Products Association (MPA) is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. MPA is the sectoral voice for mineral products, covering 100% of UK cement and lime production, 90% of GB aggregates production, 95% of asphalt and over 60% of ready-mixed concrete and precast concrete production. In 2021, the industry supplied £22 billion worth of materials and services to the Economy. It is also the largest supplier to the construction industry, which had annual output valued at £178 billion. Industry production represents the largest flow of materials in the UK economy and is also one of the largest manufacturing sectors.

For media enquiries, contact Robert McIlveen at: Robert.McIlveen@mineralproducts.org