Budget 2016: £15m pledge to support driverless cars

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There was some surprise that the Chancellor rejected the opportunity to announce an increase in fuel duty in the Budget, but he has signalled his intention to make the UK a global centre for excellence in connected and driverless vehicles

The Chancellor said the government will conduct trials of driverless cars on the strategic road network by 2017, with a consultation promised for this summer on removing the regulatory barriers to enable autonomous vehicles on England’s A roads and motorways.

George Osborne also announced the government will fund a £15m ‘connected corridor’ from London to Dover to enable vehicles to communicate wirelessly with infrastructure and potentially other vehicles.

There are also plans to start trials of comparative fuel price signs on the M5 between Bristol and Exeter by spring 2016 to drive fuel price competition and help motorists save money, as well as a project to try out ‘truck platooning’ or strings of connected lorries, on the strategic road network.

Phil Harrold, automotive partner at PwC, said: ‘The real question is what would it take to get the general public to readily accept more automotive autonomy?  It is highly likely that with an aging population and increased urbanisation the economic case can be easily made.

‘One big hurdle developers, manufacturers and the UK government will have to cross is the public's perception of safety, particularly given recently reported safety issues.’

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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