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No best answer has yet been selected by mindbullets. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I think that on urban roads (30mph & 40mph) there is relatively zero tolerance - if you are going over these limits then you are breaking the law.
On faster roads such as 50/60/70mph my understanding is that there is a 10% leeway and that is it - most cars will exceed the limit (within reason) to overtake but are expected to return to legal speed afterwards.
I've heard this thing about being allowed to overtake in excess of 70mph and I'm pretty sure it's a load of rubbish. The limit is 70. Drivers aren't allowed to go over this in order to overtake (what would be the reason be for this, so they can go faster once they've cleared the traffic in front?)
If there is any leeway at all it is due to allowing for discrepancies with the speeding cameras and like littleoldme mentioned it doesn't happen in residential areas (not where I live anyway). A couple of years back the local paper was full of people complaining that they'd been done for doing 31 in a 30mph zone.
The so called "leeway" is based on the assumption that vehicle speedometers can be inaccurate. Say yours is 5% under-recording, so when it says 30 mph you are actually travelling at 31.5mph. So you speed up to what your speedo says is 33mph (you are taking advantage of the 10% leeway) you are actually travelling at 34.65mph and - FLASH! - you're done, as you have exceeded the "leeway" (for the purpose of this example I have assumed a genuine 10% "leeway"; I'm sure you get the general drift.)
What is so painful about observing the speed limit? The sooner cars are fitted with speed limiters like trucks and buses the better. Even better, link this via GPS so that the limiter knows what local restriction applies and physically prevents the vehicle from exceeding the limit. Job done.
The various answers to this question show the danger of relying on this site for such important matters. The Association of Chief Police Officers makes no secret of the advice that it gives to individual forces. In a 70 limit, a fixed penalty is issued at 79 and a summons at 96. When a summons is issued, a driving ban becomes a possibility. I think the courts still automatically ban at speeds which are 30 over a limit. Full information can be found at www.kentandmedwaysafetycameras.org.uk