A thinktank has urged the Labour Party government to cut UK speed limits to reduce the impact of the Iran War. A new 60mph speed limit on motorways and 20mph in towns would cut fuel demand and combat rising prices, it has been claimed.
As the conflict in the Gulf continues between Iran and the USA, the Labour Party should lower speed limits for drivers as part of a package of measures to reduce the impact on households. It would help reduce fuel demand and combat rising oil prices, according to the Institute for Public Policy Research (IPPR).
“The UK cannot afford to sit back and let another energy shock drive up inflation and damage the economy,” said William Ellis, a senior economist at the IPPR. “The UK economy and public finances are expected to take a significant hit from the Iran conflict, regardless of whether the government intervenes.”
Lowering speeds would be “a dual win”, the thinktank wrote, “lowering fuel demand, while safer streets support swapping short trips to walking and cycling. This should be packaged with advice on how to drive more efficiently alongside recommendations for increased home working and carpooling.”
Andrew Bailey, the Bank’s governor, said last week: “The longer this problem goes on and the longer the disruption to energy supplies goes on, the more difficult the scenario we’re in.”
The thinktank has also called for a fuel duty cut and even an energy price cap for households. Ellis said: “The government can act now where the Bank can’t, with a well-designed policy that acts to cap prices only in the most damaging scenarios. At worst, this would save about as much as it costs – but if permanent damage or sharp interest rate rises are avoided, this could end up saving money.”
