The UK Government has launched a £40-million competition to accelerate the commercial development of self-driving services.

Launched by Minister for Investment Lord Grimstone, the ‘Commercialising Connected and Automated Mobility’ competition will provide grants to help roll out commercial self-driving vehicles across the UK from 2025.

Types of self-driving vehicles that could be deployed include delivery vans, passenger buses, shuttles and pods, as well as vehicles that move people and luggage at airports and containers at shipping ports.

Minister for Investment Lord Grimstone said: “Self-driving vehicles have the potential to revolutionise people’s lives, whether it’s by helping to better connect people who rely on public transport with jobs, local shops, and vital services, or by making it easier for those who have mobility issues to order and access services conveniently.

“This funding will help unlock the incredible potential of this new and growing industry, building on the continued development of self-driving technology, attracting investment and helping make our transport cleaner, safer and more efficient.”

The competition will help bring together companies and investors in a bid for sustainable business models to be rolled out nationally and exported globally. In addition, the funding has the potential to create tens of thousands of skilled jobs across the UK over the next decade.

£1.5 million of the funding will be used to study and explore using self-driving vehicles as a means of public transport that could provide an alternative to mass transit systems. This includes, for example, using self-driving vehicles on routes separated from other traffic that could be cheaper and more flexible than new railway lines.

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The competition will cement the UK’s reputation as a global leader in self-driving vehicle technology, unlocking a new industry that could be worth £42 billion to the UK economy by 2035, potentially creating 38,000 new skilled jobs.

Transport Minister Trudy Harrison said: “We know that self-driving vehicles have the potential to revolutionise the way we travel, making our future journeys cleaner, easier and more reliable. But our absolute priority is harnessing the technology to improve road safety.

“With around 88% of road collisions currently caused by human error, this funding will drive the introduction of new technology to improve travel for all, while boosting economic growth and highly skilled jobs across the nation.”

The first vehicles to be listed as self-driving in the UK – vehicles approved under the Automated Lane Keeping System (ALKS) Regulation – could be available for people to purchase, lease or rent later this year. Vehicles will undergo rigorous testing and will only be permitted to drive themselves when they have met stringent standards.

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