UK Government to advance drone and flying taxi tech

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Part of the £46.5 million investment will also see a crackdown on ‘faceless’ drones, which can be used in suspicious or illegal activity, through the first bespoke drone identification system. The measures will make it easier for police to identify illegal or nuisance users and clear the way for legitimate drone operators.

Delivered through the Civil Aviation Authority (CAA), the funding will also cut red tape and support the regulatory, digital and security foundations needed to bring drones and advanced air mobility – such as electric flying taxis – into more routine use across the UK. 

Aviation, Maritime and Decarbonisation Minister, Keir Mather, said: “We’re backing the next generation of British aviation innovators with nearly £50 million to drive drone regulation reforms, and unlock barriers to growth that will create jobs, lower emissions and further the UK’s world-leading aviation reputation. 

"Innovation must go hand in hand with strong security – that’s why over half of our investment will develop a new ID system to track drones in real-time, supporting emergency services and building public confidence in an industry that could be worth up to £103 billion by 2050.” 

Security Minister, Dan Jarvis, said: “This funding will create a numberplate system for the skies.

“Law enforcement will be able to identify and take action against those who break the law, taking drones out of the sky, and protecting the public.”

Hybrid Remote ID works by sending out the drone’s ID and location during flight so nearby devices can pick it up, sharing flight details through a secure online system that authorised people can access even when they’re not nearby and recording historic data. 

The funding also includes £26.5m to drive smarter regulation and cut red tape – making it easier for drones to be used in everyday public services, and driving economic growth across the UK.  

This includes speeding up approvals for drone operations for emergency responses, medical logistics and infrastructure inspection, driving forward regulation to get flying taxis in the sky from 2028. Drone operators will also benefit from a streamlined digital application process, reducing the time required to navigate regulation and prepare applications. 

The Government is clear that regulation must support growth, with a focus on faster, more predictable approvals and a better experience for operators, while maintaining the UK’s high safety standards.  

Today’s announcement is part of the UK Government’s broader ambition to maintain and expand the country’s position as an aviation superpower – including work to strengthen UK research and innovation, ensuring high-growth sectors such as robotics and AI have the support they need to thrive. 

This follows other commitments to accelerate airspace modernisation, invest £2.3 billion in the development of green aircraft, and provide £63 million support for sustainable aviation fuel. 

Sophie O’Sullivan, Director Future Safety & Innovation at the UK Civil Aviation Authority said: “Our work going on right now is laying the foundations for commercial operation in the future, unlocking routine drone deliveries, long-range inspections and hospital logistics.

“This vital funding supports the next generation of aerospace, strengthening safety and bringing economic growth for the UK.” 

Stuart Simpson, CEO of Vertical Aerospace, said: “This is a welcome investment in the sector by the Government. To lead in advanced air mobility requires a regulatory system that can move at pace while maintaining the highest safety standards. The UK’s CAA has been a serious and constructive partner. 

“This investment is a further step towards positioning the UK at the leading edge of the eVTOL sector moves towards commercial operations.”

Stephen Wright, Chairman and Founder of Windracers, said: “This is a significant step forward for the UK’s drone and advanced air mobility sector. Targeted investment alongside practical regulatory reform is exactly what is needed to unlock real world operations at scale.

"At Windracers, we see first-hand how autonomous aviation can strengthen supply chains, support critical services and operate reliably in some of the most challenging environments.

"We are proud to work alongside the Department for Transport and the Civil Aviation Authority as a trusted partner, helping to shape a regulatory environment that supports UK innovation while maintaining the highest standards of safety.”