Scrap metal licensing policy

When the Scrap Metal Dealers Act 2013 (SMDA) commenced in October 2013, it repealed the Scrap Metal Dealers Act 1964 (and linked legislation) and Part 1 of the Vehicles (Crime) Act 2001 relating to Motor Salvage operators. The SMDA created a revised regulatory regime for the scrap metal recycling and vehicle dismantling industries which would better reflect the modern scrap metal industry.

The SMDA aims to raise standards across the scrap metal industry by:

• Requiring dealers to keep detailed and accurate records of transactions.
• Requiring dealers to verify the identity of those selling metal to them.
• Prohibiting making of cash payments for scrap metal

The SMDA identifies local authorities, or councils, as the principal regulator, giving them the power to better regulate these industries by allowing them to refuse to grant a licence to ‘unsuitable’ applicants, and a power to revoke licenses if a dealer becomes ‘unsuitable’.

Decisions, including the setting of fees and the power to determine applications is an Executive function of the Council. The power to grant licences and take enforcement under the SMDA is duly delegated to officers as detailed under the Council’s Scheme of Delegations.