Between 2024 and 2028, the tax expenditure on coal for fossil fuel production in the UK is forecasted to slightly increase, starting from 0.015% of GDP in 2024 and reaching 0.018% by 2028. This represents an average year-on-year increase of approximately 1.6%. As of 2023, the actual expenditure was 0.015% of GDP.

Future Trends to Watch For:

Increasing governmental pressure to reduce carbon emissions may lead to more stringent regulations and a potential decline in tax expenditures related to coal.
Shifts in energy policies towards renewable sources could further decrease reliance on fossil fuels, affecting related tax expenditures.
Global economic factors, such as fluctuations in energy prices or supply chain disruptions, might impact coal production and consequently influence tax expenditure trends.