Cut UK speed limits to reduce Iran war impact on consumers, thinktank urges
Summary
A UK thinktank recommends lowering speed limits and cutting fuel taxes to reduce the impact of the Iran conflict on consumers. They suggest these measures could help lower fuel demand, reduce inflation, and support the economy amid rising energy prices.Key Facts
- The Institute for Public Policy Research (IPPR) suggests reducing speed limits to 20 mph in towns and 60 mph on motorways.
- Lower speed limits aim to cut fuel use and encourage walking, cycling, carpooling, and working from home.
- The thinktank also proposes a temporary fuel duty cut of 10p per litre until spring 2027.
- A new energy price cap of £2,000 a year is recommended to help households manage high gas and electricity bills.
- These measures could reduce inflation peaks from 5.8% and possibly prevent Bank of England interest rate hikes.
- The Bank of England is cautious about rising rates but has kept them steady at 3.75% for now.
- The policy package might cost up to £5 billion a year but is less expensive than previous energy crisis responses.
- The UK Treasury could lose up to £8 billion annually from economic slowdown without such support.
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