Government announces £50m investment to advance drone and flying taxi technology

The UK government has unveiled almost £50m in funding aimed at accelerating the development of drone technology and advanced air mobility, including so-called flying taxis, while also introducing new measures to tackle illegal drone activity.

image: govwire.co.uk

The package, delivered through the Department for Transport and the Civil Aviation Authority (CAA), includes funding to support innovation in drone operations, regulatory reform and airspace management, alongside investment in new security capabilities.

According to government statements, around £26m of the funding will be used to support the development and integration of drones and electric vertical take-off and landing (eVTOL) aircraft into UK airspace, with a focus on enabling commercial applications such as deliveries, emergency response and infrastructure inspection.

A further £20m is being directed towards the creation of a drone identification system designed to improve enforcement against illegal or unsafe drone use. The system, often described by officials as a “numberplate for the skies”, will allow law enforcement agencies to identify operators in real time and access flight data to support investigations.

Ministers said the identification technology, described as Hybrid Remote ID, will transmit a drone’s location and identification information during flight and enable authorised bodies to monitor activity through a secure digital platform.

Aviation and decarbonisation minister Keir Mather said the investment would support economic growth and innovation in the aviation sector, while also strengthening safety and public confidence. Security minister Dan Jarvis said the new system would help law enforcement take action against illegal drone activity and improve protection of UK airspace.

The government also said the funding will be used to streamline regulatory processes through the CAA, with the aim of speeding up approvals for drone operations and reducing administrative barriers for commercial operators. Officials highlighted potential applications in healthcare logistics, emergency services and national infrastructure monitoring.