The British Aggregates Association (BAA) said it expects Chancellor Alistair Darling to slap a further increase on the tax on quarried products.

This will raise the tax from £1.60 to £1.95 plus vat for every tonne sold.

BAA executive officer Richard Bird said: “The UK construction industry will always require virgin aggregates to supply high specification projects.  If we want anti-skid roads, long life bridges, high structures and quality rail ballast, then we are not talking recycled. The levy is not working because it is not designed to deliver environmental benefit; it is designed to collect cash.”