In 2023, the air pollution-related energy tax revenue in the UK was valued at 6.08% of environmental tax revenue. The forecast from 2024 to 2028 shows a steady increase, starting from 6.42% in 2024 and reaching 7.52% by 2028. This reflects a compound annual growth rate (CAGR) of approximately 4.2% over the five-year period. Year-on-year, the growth is projected at around 5.8% in this span.
Future trends to watch for include:
- Potential policy changes aiming at reducing air pollution which could impact tax rates.
- Evolving energy consumption patterns as the UK transitions to renewable energy sources.
- Technological advancements in pollution monitoring and control influencing tax structures.