UK Considers Lower Speed Limits to Counter Iran-War Energy Shock

IPPR advises capping motorways at 60 mph and towns at 20 mph, adding a temporary 10-pence fuel-duty cut, a £2,000 energy-price cap and incentives for home-working. The Green Party paper calls for a 55 mph limit on roads, 20 mph in towns, higher fuel duty and five-year driving-test retakes.

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The Iran war has tightened global oil supplies, pushing UK petrol up 16 % and diesel up 30 % since the conflict began. The Bank of England warned inflation could peak at 5.8 %–6 % by early 2027, while transport uses about three-quarters of UK oil.

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DVSA reports a 15 % fuel saving dropping from 70 mph to 50 mph and about 12 % at 55 mph, saving roughly £200 a year for a commuter.

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William Ellis warned UK cannot “sit back and let another energy shock drive up inflation and damage economy.” Michael Shanks urged motorists to “go about your business as normal.” Rachel Reeves said there is no problem with supply, price impact. Andrew Bailey said situation is “more difficult.” IEA's Fatih Birol called crisis threat and urged lower speeds.

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Richard Holden, Secretary, called Green proposals an “outrageous assault on motorists” and a “war on motorists.” Rachel Millward said she was unaware of 55 mph plan, calling it “certainly not one of policies.” Greens at 19 % of vote, close to Conservatives, while Reform leads at 23 %.

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• “The UK cannot afford to sit back and let another energy shock drive up inflation and damage the economy,” — William Ellis, Senior Economist, IPPR

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• “It is well worth drivers adapting their driving style and speed both to save money and enhance safety. We estimate that diesel drivers can save £10 per tank by changing their driving style.” — Edmund King, President, AA

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• “This is a full-blown war on motorists,” — Richard Holden, Shadow Transport Secretary

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• “go about their business as normal,” — Michael Shanks, Energy Minister

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The Green Party document proposes a 55 mph limit, yet officials say the policy is outdated and was unknown to senior members. IPPR recommends a 60 mph motorway cap, creating a speed-target discrepancy. No government plan to lower speed limits has been announced.

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Lower speed limits could reduce fuel demand, easing inflationary pressure and potentially averting further interest-rate hikes. The measures also promise safety benefits and a shift toward sustainable travel, while the fiscal package aims to shield households from soaring energy bills.

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The proposals may increase pressure on the government to adopt demand-reduction policies as the Middle-East conflict persists. Upcoming Treasury decisions on fuel-duty cuts and the energy-price cap, together with the Bank of England’s next rate review, will shape the policy trajectory.

The Guardian