Firms that recycle and reuse millions of tonnes of demolition and construction waste to produce vital recycled aggregate complain they are being used as ‘cash cows’ by the regulator to recover policing costs of unrelated illegal waste activities.

The Environment Agency plans to impose a 10% levy on compliant firms’ waste permit fees to help tackle rogue operators.

The new waste crime levy is set to come into force on sites from April, at a time when regulatory fees paid by legitimate businesses have already reached an all-time high.

Aggregate producers, represented by trade body the Mineral Products Association, branded the new charge on recyclers as “illogical and unjust”.

MPA executive director Mark Russell said: “Regulators often view increasing fees as the solution to their financial problems, when from our perspective such charges rarely deliver the desired improvements.

“But the waste crime levy takes things to a disturbing new level. Compliant businesses should not be treated as a cash cow to raise additional income to support other activities.

“Cumulative regulatory drag is real and is already harming the British economy. Yet we continue to see incremental changes that introduce additional cost, bureaucracy, time and effort, often with little meaningful effect.

“This decision flies in the face of the Government’s drive to kickstart economic growth, and it will discourage investment in the circular economy.”