A new £40m competition to kick-start commercial self-driving services such as delivery vehicles and passenger shuttles has launched today. 

The competition will provide grants to help roll out commercial use self-driving vehicles across the UK from 2025

The ‘Commercialising Connected and Automated Mobility’ competition will provide grants to help roll out commercial use self-driving vehicles across the UK from 2025, enhancing consumer convenience while also cutting congestion and emissions.  

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. 

The funds will help accelerate a new market for the technology, which could be worth £42bn to the UK economy by 2035 and create 38,000 new skilled jobs. It could also develop sustainable business models to be rolled out nationally and exported globally. 

A total £1.5m 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. 

The announcement was made by Lord Grimstone, Minister for Investment, who 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 is being run by the Centre for Connected and Autonomous Vehicles (CCAV) and will be supported by the Government’s forthcoming comprehensive legal framework to ensure safe and responsible deployment of self-driving vehicles. 

Earlier this month, the Government announced a Transport Bill in the recent Queen’s Speech that will introduce comprehensive legislation for self-driving vehicles to enable safe and responsible deployment. 

Last year saw the Department for Transport confirm it’s planning to allow vehicles with Automated Lane Keeping Systems (ALKS) technology on the roads – these 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. 

The Society of Motor Manufacturers and Traders greeted today’s announcement, saying self-driving vehicles offer major benefits to society – improving road safety, supporting new jobs and economic growth, and enabling greater mobility for everyone.  

Chief executive Mike Hawes added: “Recent regulatory reforms have helped Britain establish itself as a leader in the rollout out of self-driving passenger vehicles, and today’s announcement is a significant step towards self-driving public transport and goods delivery services becoming a reality. This new funding competition will help drive innovation and, potentially, private investment in UK automotive, ensuring cutting-edge self-driving technology finds a clearer path to UK roads.”

Logistics UK also welcomed the news. Michelle Gardner, acting deputy director – public policy, commented: “The £40m government competition will help accelerate emerging technologies and with possible self-driving vehicles including those that move containers at shipping ports, as well as delivery vehicles, this is a welcome step forward. Logistics UK is also pleased by the £1.5m funding for feasibility studies; safety and sustainability must remain a core focus alongside consideration to vital economic and business benefits.”