Several of the UK’s tax bases are directly linked to activities that generate greenhouse gas emissions, with others indirectly linked. So as emissions fall as the UK transitions to net zero, receipts generated from these emissions-linked taxes will be affected. In this working paper, we conduct an initial, high-level analysis to explore the proportion of emissions that are directly or indirectly linked to tax bases, the value of the associated receipts, and the risks they face from decarbonisation.

We have published our latest working paper here.

Alongside this publication and following requests for further detail on the projections presented in our July 2022 Fiscal risks and sustainability report (FRS), we have published a supplementary release containing this information.