In 2023, the UK's air pollution-related energy tax revenue stood at a value of about 49.70 USD per capita, PPP=2010. From 2024 onwards, anticipated figures depict a progressive increase, with a year-on-year variation of approximately 5.7% from 2024 to 2025, 4.4% from 2025 to 2026, 3.3% from 2026 to 2027, and 2.6% from 2027 to 2028. The Compound Annual Growth Rate (CAGR) over the five years from 2023 to 2028 is forecasted at 3.8%.
Future trends to watch for:
- Impact of evolving environmental policies on tax rates and their potential to accelerate or decelerate revenue growth.
- Shifts in industrial sectors towards cleaner energy sources, potentially affecting taxable activities linked to pollution.
- Public and corporate response to tax incentives and disincentives aimed at reducing pollution.