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Cut Fuel Duty and Lower Speed Limits to Combat Energy Crisis, IPPR Says
The think tank says the measures would protect households and limit inflation as oil prices rise and the Treasury faces up to £8 billion in annual costs.
- On Thursday, the Institute for Public Policy Research urged Labour ministers to implement a temporary 10p fuel duty cut and a £2,000 energy price cap to mitigate economic fallout from the war in Iran.
- Prolonged conflict in the Middle East has disrupted the Strait of Hormuz, driving up energy prices and threatening to push inflation to 5.8 per cent and real GDP growth to 0.3 per cent.
- Associate director Sam Alvis at IPPR argued that well-designed intervention would prevent damaging interest rate rises, though the package could cost up to £5bn annually if fully implemented.
- Work and Pensions Secretary Pat McFadden warned yesterday that the economic shock could lead to job losses, while Chancellor Rachel Reeves told The Yorkshire Post fuel duty remains "under review."
- The think tank also proposed reducing speed limits to lower energy demand, as the Treasury faces potential losses of up to £8bn annually from higher debt interest and lost tax revenue.
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Think-Tank: Reduce Speed Limits to Ease Iran War Oil Price Shock
The British government has been urged to cut speed limits as part of emergency measures to reduce the economic impact of the Iran conflict on consumers, arguing that lower driving speeds could help ease pressure from rising energy prices. UK thinktank The Institute for Public Policy Research (IPPR) says that legal limits should be reduced to 20mph in towns and cities and 60mph on motorways. It argued this would significantly cut fuel consumption…
Coverage Details
Total News Sources15
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
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