The tax expenditure on coal for residential use in the UK is forecasted to decline steadily from $25.84 million in 2024 to $22.48 million in 2028, with an average year-on-year decrease of approximately 3.46%. In 2023, the expenditure was higher, highlighting a firm downward trend. The compound annual growth rate (CAGR) over this period reflects a consistent reduction in tax expenditure. This decline may be influenced by policy shifts towards cleaner energy and decreased residential reliance on coal.
Future trends to watch for include potential policy developments aimed at accelerating coal phase-out to meet emissions targets, continued advancements in renewable energy adoption, and economic factors impacting energy market dynamics and household fuel choices.
