A leading thinktank has called on the Labour Party government to reduce speed limits across the UK in response to the ongoing conflict between Iran and the USA. They propose cutting the motorway speed limit to 60mph and limiting speeds to 20mph in towns as part of a broader strategy to curb fuel demand and mitigate rising oil prices.
The Institute for Public Policy Research (IPPR) argues that these measures could alleviate economic strain caused by the energy shock, which threatens to exacerbate inflation and hamper public finances. William Ellis, a senior economist at the IPPR, emphasized the urgent need for government action: “The UK cannot afford to sit back and let another energy shock drive up inflation and damage the economy.”
Lower speed limits would not only reduce fuel consumption but also promote safer streets, encouraging more walking and cycling for short trips. The IPPR suggests this approach be combined with guidance on efficient driving techniques, as well as policies encouraging home working and carpooling to further decrease fuel use.
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Echoing concerns over energy supply disruptions, Andrew Bailey, Governor of the Bank of England, said, “The longer this problem goes on and the longer the disruption to energy supplies goes on, the more difficult the scenario we’re in.”
In addition to speed limit reductions, the thinktank recommends implementing a fuel duty cut and introducing an energy price cap for households to provide immediate relief. Ellis noted, “The government can act now where the Bank can’t, with a well-designed policy that caps prices in the most damaging scenarios. At worst, this approach could balance costs and savings, but it has the potential to prevent permanent economic damage and avoid sharp interest rate increases.”