The UK government has announced that driverless cars will be allowed on public roads in trials from January next year.

Business Secretary Vince Cable has announced measures today that give the green light for driverless cars to take to UK roads from January 2015.

UK cities can now bid for a share of a GBP10m competition to host a driverless cars trial. The UK Government is calling on cities to join together with businesses and research organisations to put forward proposals to become a test location.

Up to three cities will be selected to host the trials from next year – and each project is expected to last between 18 and 36 months and start in January 2015.

Ministers have also launched a review to look at current road regulations to establish how the UK can remain at the forefront of driverless car technology and ensure there is an appropriate regime for testing driverless cars in the UK.

Business Secretary Vince Cable revealed the details of the new plan at a research facility belonging to Mira, an automotive engineering firm based in the Midlands.

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“Today’s announcement will see driverless cars take to our streets in less than six months, putting us at the forefront of this transformational technology and opening up new opportunities for our economy and society,” he said.

David Raistrick, UK Automotive leader at Deloitte, said today’s announcement was extremely positive. “The Government’s announcement this morning is extremely positive news, indicating that the UK is intent at being a leader in this new technology. The UK has become known for being at the leading edge of technological developments and this will enable the automotive sector to continue its renaissance.

“Whilst the public has not yet embraced the concept of autonomous cars trundling around Britain’s roads, the reality is that, within a decade, technology advancements will allow driverless cars to become the norm. Today’s barriers to adoption largely came from UK legislation preventing driverless cars, coupled with the price entry point for this new technology. The Government’s announcement will remove some of these hurdles, whilst also encouraging the UK to become an early adopter. I would expect that as the technology advances, the prices will start to fall.”

Neil Marshall, automotive research analyst at Deloitte, added: “The only other major economy to have already allowed such a trial is the United States where driverless vehicles are allowed in three states (California, Nevada and Florida) and have proven the technology to be both stable and safe. Sweden is proposing a large trial, with Japan having last year carrying out a limited test on their public roads. I believe it is strategically important for the UK to also be an early adopter in order to help protect our global involvement in this important sector.”