Passengers will be able to book self driving taxis later this year for the first time after operators were invited to apply for licences to run cars across the country.
Ministers are launching a pilot scheme for the technology as they believe it could create “thousands” more jobs and unlock billions for the UK economy by 2035.
But the vehicles have come under greater scrutiny in recent days after residents in east London complained about self-driving cars currently being tested in the capital repeatedly entering dead end streets in the middle of the night.
The Department for Transport believes the vehicles will provide greater freedom and independence for older and disabled people, as well as providing greater options for work and leisure activities.
It is also championing the technology as it believes it will make roads safer, with human error currently blamed for around 88 per cent of collisions on UK roads.
Roads Minister Simon Lightwood said: “Self-driving vehicles represent a transformative opportunity for Britain, opening up independent travel for disabled people and older adults, whilst driving growth and creating high-skilled jobs across the UK.
“This pilot scheme brings that future closer, giving passengers the opportunity to experience self-driving travel first-hand while ensuring safety always comes first.”
The start date for fully self-driving taxis to be commercially available in the UK has been repeatedly delayed, but officials believe the scheme is now on track and will allow passengers to book autonomous taxis and buses before the end of the year.
Vehicles have already been tested in this country for some time, but at the moment they require a safety driver who can take control of the car in case of an emergency. Soon there will be no safety driver, with only the car’s own sensors and software monitoring the roads and responding automatically where necessary.
The Government said it is working closely with safety and accessibility experts to develop the regulations needed to safely bring self-driving vehicles to British roads.
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, said the pilot was a “significant milestone in the safe and responsible rollout” of automated vehicles on British roads.
“Automated passenger services represent a market expected to be worth some £3.7 billion annually in Britain by 2040 whilst having the potential to widen society’s access to mobility and improve road safety,” he added.
Operators, such as British firm Wayve and US outfits Uber and Waymo, are already testing self-driving cars on UK roads, with a safety driver onboard.
Waymo bosses were forced to apologise earlier this month after one of its cars mistakenly drove down an east London cul-de-sac in the early hours, forcing it to reverse out making a loud noise.
Residents of Elder Street in Spitalfields said the car had been disturbing residents with a “ridiculous mixture of a reversing noise and siren sound” at about 4am most days last week.
The company also made the headlines in the US after dozens of its driverless cars descended on a small residential town in Atlanta due to a glitch.
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