In 2023, the tax expenditure on all fossil fuels for fossil fuel production in the UK stood at approximately 6.55 billion US dollars. From 2024 onwards, the forecasted expenditure exhibits a consistent upward trend. The year-on-year percentage increases are as follows: 2024 (2.6%), 2025 (2.5%), 2026 (2.6%), and 2027 (2.4%). The Compound Annual Growth Rate (CAGR) for this forecast period from 2024 to 2028 is approximately 2.5% annually.
Future trends to watch for include the UK's energy transition policies, which may impact fossil fuel subsidies and could alter these expenditures significantly. Additionally, global market shifts and advancements in renewable energy technologies could reshape future forecasts.
