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The Government has confirmed a £20 million fund for research and development into driverless vehicles, and has launched a code of practice for testing autonomous vehicles.
The Government said the investment would put Britain at the forefront of the intelligent mobility market, which it expects to be worth £900 billion by 2025.
The Government wants bidders to put forward proposals in areas including safety, reliability, how vehicles communicate with each other and how driverless vehicles can give an ageing population greater independence.
Successful bidders will match the funding with their own money.
The code of practice provides the industry with framework in order to safety trial cars and create more sophisticated versions of models that already exist.
Automated vehicles will have to carry data recording devices which is capable of recording the following information as a minimum:
All testers of autonomous vehicles must carry a valid driving licence, while the Government recommends only those with "considerable experience" should test the driverless vehicles. Insurance will still be required at all times, and all traffic laws will remain in place during testing.
"Our vision is that through careful testing, well designed automated vehicles will be developed which, when operating in an automated mode, will display exemplary driving characteristics, improving the safety of all road users," the Department for Transport said in the code of practice.
"Driverless cars will bring great benefits to our society and economy and I want the UK to lead the way in developing this exciting technology," said Transport minister Andrew Jones. "Our code of practice clearly shows that the UK is in the best position when it comes to testing driverless cars and embracing the motoring of the future. We now look forward to working with industry to make this a reality."
"Much research and development is required before driverless cars become commonplace on our streets, but the launch of the code of practice brings this vision a step closer," said Professor Nick Reed, technical lead of the Gateway driverless car project. "It sets the scene for the safe evaluation and development of highly and fully automated vehicles for years to come and is another example of how the UK is leading the charge in this area. Combined with the £20m funding, the UK is now firmly positioned at the centre of future mobility."
The £20 million fund is part of a £100m budget for driverless cars that was announced by George Osborne in the Spring 2015 Budget.
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