The UK tax expenditure on fossil fuels is projected to increase steadily from 2024 to 2028, rising from 13.57 billion USD in 2024 to 15.03 billion USD by 2028. This forecasted growth signifies a consistent year-on-year increase: approximately 2.8% in 2025, 2.6% in 2026, 2.6% in 2027, and 2.4% in 2028. The compound annual growth rate (CAGR) from 2024 to 2028 is approximately 2.6%, showing a moderate upward trend in fossil fuel tax expenditure.
Future trends to watch for include:
- Government policy shifts towards renewable energy that might impact fossil fuel taxation.
- Changes in consumer behaviors influenced by environmental concerns and sustainable practices.
- Potential economic factors or global events that could affect energy pricing and tax policies.
- Technological advancements in energy efficiency and alternative fuel sources.
