Britain should lower speed limits for drivers as part of emergency measures to protect households from the impact of a new Iran war-driven energy shock, a leading think-tank has said.
“The UK cannot afford to sit back and let another energy shock drive up inflation and damage the economy,” said William Ellis, senior economist at the Institute for Public Policy Research (IPPR).
A newly released IPPR study argues that reducing fuel demand should be a central part of the UK’s response to volatile oil and gas prices.
The paper says around three-quarters of UK oil consumption is used in transport. It suggests that lower speed limits, alongside behavioural changes such as reduced car use, carpooling and increased home working, could help ease fuel demand and reduce inflationary pressure linked to energy costs.
What has been proposed?
