Dreams of self-driving cars in the UK could crash at the starting line.

If promised rules to govern the technology are not approved before the next general election, Britain may lose out on investments in autonomous vehicles (AVs) and entrepreneurs may move testing abroad, according to startups and insurance companies.

Truly autonomous cars are not yet allowed on Britain's roads, despite the government's ambition to be a global leader in AV technology. This makes it difficult for start-ups to commercialise their vehicles and insurers to evaluate their risks.

The UK government said in August of last year that it will move a measure that would provide specific restrictions by 2025 during the current parliamentary term, which is anticipated to finish this fall.

Political unrest has prevented that from happening thus far, prompting the administration to scale back its goals for this session.

Industry urges the government to introduce regulations in the upcoming session in order to avoid significant delays before a national election that is scheduled for January 2025.

Claudio Gienal, head of UK and Ireland operations for international insurer AXA, which thinks the technology might avoid accidents, stated that there is a "window of opportunity for the UK to at least be leading on something."

"Whoever moves first will have the advantage of attracting investment, skills, and expertise."

According to projections, over 40% of new vehicles might have self-driving capabilities by 2035, and Britain's leadership in AV technology could result in the creation of up to 38,000 new skilled jobs in a sector worth 42 billion pounds ($53 billion) to the country by that time.

Moreover…

With its Centre for Connected and Autonomous Vehicles obtaining more than £400 million in private and public financing for more than 90 endeavours, the UK government has so far been viewed as being quite supportive of AV businesses.

Two impartial governmental organisations provided well-received suggestions for an AV law last year.

Delaying would compel firms to test and start earning income elsewhere, according to Ashley Feldman, programme and policy manager for transport and smart cities at industry association TechUK. 

In collaboration with bus company Stagecoach, bus manufacturer Alexander Dennis, and with government funding, Bristol-based Fusion Processing recently established a 14-mile autonomous bus route between Edinburgh and neighbouring Fife. A safety driver was behind the wheel.

In 2025, Fusion hopes to provide commercial autonomous bus services in the UK.

According to CEO Jim Hutchinson, "if that doesn't happen, then we would have to change our plans," which would include doing testing in other nations.

With roughly $225 (£180.5) million in funding from investors, Oxford-based Oxbotica, a provider of AV software, is working on AV projects for clients including BP and British online retailer and technology company Ocado.

(Sources: investing.com, reuters.com)