As of 2023, the tax expenditure on natural gas for fossil fuel production in the UK stood at approximately 2.9 billion US dollars (constant 2020). The forecast indicates a steady annual increase, with values expected to rise to 2.99 billion in 2024, reaching 3.4 billion by 2028. Key trends show around a 3.3% year-on-year growth in tax expenditure from 2024 to 2028, reflecting a sustained demand and perhaps policy adjustments supporting fossil fuel usage or transition.
Future trends to watch for include potential policy shifts towards renewable energy sources, which could alter the trajectory of tax subsidies for fossil fuels, and broader global economic pressures impacting fossil fuel consumption and related financial incentives.
