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Sharp cuts in the speed limits, with cars being fitted with automatic speed controls, would drastically reduce road accidents and the impact of the car on the environment, a think-tank policy paper published today suggests. Cars should be restricted to 20mph in towns and 55mph elsewhere, the authors say.

The report, Speed Control and Transport Policy, published by the independent Policy Studies Institute, argues that the adoption of lower speed limits would "save lives and make our towns safer for all road users, especially children and old people". It also argues that slowing down cars will reduce pollution and fuel consumption and weaken the case for major new roads.