In case drivers were in any doubt about where so-called ‘environmental taxes’ hit hardest, then new figures from the UK’s official Office of National Statistics spell out just how much we’re coughing up to fund government expenditure.
By far the biggest contribution drivers make to the national coffers comes from fuel duty, which is the cash the government rakes in from every litre of petrol or diesel you put in your tank. In total in 2024, that number hit the £24.6 billion mark. Fuel duty has been the biggest component of energy taxes since 1997, with a similar amount raised annually by schemes such as the Climate Change Levy on energy companies, which adds costs to domestic electricity bills - also paid by many drivers, of course.
Energy taxes form the biggest chunk of revenues falling under the ONS ‘environmental tax’ umbrella, but transport taxes are also a big component. Once again, drivers take the most punishment here, with motor vehicle duty paid by UK households and businesses as ‘road tax’ amounting to £8.2 billion.
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