Forecast: Air Pollution-Related Energy Tax Revenue in the UK

Air pollution-related energy tax revenue in the UK is forecasted to remain stable at 0.11% of GDP from 2025 to 2028, demonstrating negligible year-on-year growth following an initial increase from 0.1% in 2024. This indicates a steady policy or demand environment affecting this fiscal domain. The compound annual growth rate over this period reflects minimal change.

Future trends to watch for include:

  • Potential shifts in government policy, which could alter energy taxation dynamics.
  • Technological advancements in clean energy that may impact tax structures and revenue.
  • Economic shifts that could affect GDP and thus alter the revenue as a percentage of GDP.

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