If you’re wondering where so-called ‘green taxes’ really land hardest, new stats from the Office for National Statistics make it crystal clear: drivers are footing a huge chunk of the bill.
The biggest hit comes from fuel duty – the tax added to every litre of petrol or diesel you put in your tank. In 2024 alone, that added up to a massive £24.6 billion. Fuel duty has been the top source of environmental tax income since 1997. Other charges, like the Climate Change Levy (which bumps up your electricity bill), bring in a similar amount – and of course, drivers are paying those bills too.
Overall, ‘energy taxes’ like these are the biggest slice of the UK’s environmental tax revenue. But transport taxes come in strong too – with drivers once again paying the price. Road tax (officially called motor vehicle duty) brought in another £8.2 billion in 2024.
Put it all together, and drivers are behind almost £33 billion of the £54.2 billion raised through environmental taxes last year. These taxes are based on things like petrol use or flights, which the ONS says are aimed at cutting pollution and environmental damage.
But not everyone’s convinced they’re working as intended. Tony Blair recently clashed with Labour after saying the UK’s net zero policies were “doomed to fail.” And the AA’s head of roads policy, Jack Cousens, said most drivers will be shocked to see just how much of the tax burden falls on them. Sure, drivers expect to pay something – but this scale of contribution? That’s a wake-up call.
The AA also called out what it sees as “stealth taxes” being added by local councils under the environmental label – things like CO2-based parking permits, diesel parking surcharges, and workplace parking levies. Cousens says it's time these charges were fully explained to the public, and the money accounted for.
