Under the plans, the Government will look to make the UK a world centre for the testing and development of driverless cars, adding that it will conduct a review to ensure that the legislative and regulatory framework to support this aim, reporting late 2014. It will also create a £10m prize fund for a town or city to develop as a testing ground for driverless cars.

In response, David Raistrick, UK automotive leader at Deloitte, said: ‘The UK leads the way in cutting edge technology, so this is an obvious investment for the UK to make to remain at the top of the industry. Driverless cars will become a reality and it is just a question of when, not if, it will happen. The development will open the door to significant opportunities for the UK economy as it will revolutionise how people spend time in their vehicles. Safety will be paramount and the automotive manufacturing industry needs to work alongside technology developers in order to minimise the risks associated with driverless cars.’

Last month saw the Department for Business, Innovation & Skills announce plans to put 20 driver-operated two-seater “pods” into action on designated pathways in Milton Keynes city centre. Announced by Business Secretary Vince Cable during a visit to Northampton, the project will be extended by mid-2017 to comprise 100 pods that are fully autonomous and will run on pathways alongside people and will use sensors to avoid obstacles.