The British government has been urged to cut speed limits as part of emergency measures to reduce the economic impact of the Iran conflict on consumers, arguing that lower driving speeds could help ease pressure from rising energy prices.
UK thinktank The Institute for Public Policy Research (IPPR) says that legal limits should be reduced to 20mph in towns and cities and 60mph on motorways. It argued this would significantly cut fuel consumption and help counter soaring oil prices driven by geopolitical tensions.
Alongside speed reductions, the IPPR called for a temporary £10 (€11.57) cut in fuel duty and the introduction of a new energy price cap of £2,000 (€2324) per year for households.
The thinktank also described lower speed limits as a “dual win,” reducing fuel demand while encouraging safer streets and alternative transport such as walking and cycling. It suggested the policy could be combined with advice on more efficient driving, increased remote working, and car-sharing schemes.
The report noted that it would be hard to reverse a fuel duty cut, but suggested that rates could be automatically adjusted upwards as crude oil prices fall. It said such a system would remain in place until fuel prices returned to the levels projected in the government’s 2025 Budget.
It also pointed out that Labour has been reluctant to bring in new measures to shield drivers from high petrol prices, despite announcing some plans in last year’s Autumn Budget.
Critics of the proposals may see the IPPR as bending events in the news to fit its existing policy agenda, rather than an innovative response.
