IPPR urges UK speed cuts, fuel duty drop, energy cap

The Institute for Public Policy Research (IPPR) has called on the UK government to lower speed limits, reduce fuel duty and impose an energy price cap to shield households and the economy from the fallout of the escalating conflict between Iran and the United States in the Gulf region.

The thinktank's proposals, outlined in a new report, include capping motorway speeds at 60 mph and urban roads at 20 mph, alongside a temporary 10p per litre cut in fuel duty until spring 2027 and a household energy price cap of £2,000 per year. These measures aim to curb fuel demand and counter rising oil prices triggered by disruptions in the Strait of Hormuz, a key global oil shipping route that has been affected by the hostilities.

Without intervention, IPPR economists warn, inflation could peak at 5.8 percent, more than double the Bank of England's 2 percent target, while economic growth slows to 0.3 percent. This scenario could cost the Treasury up to £8 billion annually in higher debt payments and reduced tax revenues. The proposed package, estimated to cost up to £5 billion a year, would offset those losses by lowering peak inflation by up to two percentage points and potentially averting...