The tax expenditure on all fossil fuels for the residential sector in the UK, expressed as a percentage of GDP, remains stable from 2024 to 2026 at 0.17%. A slight decline to 0.16% is forecasted for 2027 and 2028. The stability suggests minimal volatility and the contained dip in later years may reflect shifts towards cleaner energy or efficiency gains.
Future trends to watch for include:
- Government policy changes aimed at reducing fossil fuel dependency.
- Potential technological advancements in residential energy efficiency.
- Market shifts due to economic factors or increased renewable adoption.
