The UK’s Aviation Minister has announced over GBP 20 million funding today (1 April 2025) to launch new flight technologies such as drones and air taxis that can support healthcare, assist police, inspect critical infrastructure and provide delivery services.
In addition, the Department for Transport (DfT), Civil Aviation Authority (CAA) and the new Regulatory Innovation Office (RIO) in the Department for Science, Innovation and Technology (DSIT) will streamline regulatory processes to support the commercialisation of the industry.
Aviation Minister, Mike Kane, said that he wants the UK to have the most advanced aviation technology ecosystem in the world. “That means creating a nimble regulatory environment and a culture of innovation so everyone can benefit from cutting-edge transport while tackling emissions, traffic and potentially saving lives. Our investment alongside the new Future of Flight industry group will bring together tech experts, drone operators, flying vehicle manufacturers and local communities to identify where change needs to happen.”
The RIO aims to drive smarter regulation to cut red tape while ensuring high safety standards. It will support DfT and CAA in enabling faster integration of drones and flying taxis, helping businesses grow and innovate.
This includes consulting on the mandatory use of new electronic conspicuity standards and technologies, which allow aircraft to share their location electronically, helping drones and crewed aircraft fly safely alongside each other.
Science Minister, Lord Vallance, said the regulatory reforms for drones – requiring all aircraft to share their location – will make drone operations safer and therefore speed up approvals, allowing them to operate near airports and simplifying their use for delivering medical supplies while unlocking further commercial opportunities. “This is a practical step to cut red tape and a great piece of progress for the Regulatory Innovation Office, growing the UK’s position as a world leader in emerging technologies and helping drive the growth that will deliver our Plan for Change.”
In addition, as previously confirmed by the Chancellor, plans are now underway to simplify regulations to enable two-year airspace change for drone operations. This will enable operators to fly safely for longer and gather data to inform future services.
Other changes will simplify regulations to enable emergency services including firefighters and paramedics to use drone services, as well as noise exemptions for drone trials within the Airspace Change Process, and simplifying the drone operational application process.
The regulator, drone operators, flying vehicle innovators and local authorities will come together with the government at the Future of Flight industry group to help guide the government on its mission to transform technology in aviation. Part of the government’s Plan for Change, the group will focus on how to unlock the benefits of future aviation technologies to propel the country’s economic growth forward. It will look at how the UK government can harness the potential of technology and create a culture of innovation, with the aim of improving everyday challenges.
The Minister for Aviation will co-chair the group, alongside Duncan Walker, CEO of Skyports.
Duncan Walker, CEO of Skyports and Co-Chair of the Future of Flight industry group, said the additional government funding is a vital boost. “This investment will accelerate the development and deployment of innovative flight technologies, from complex drone operations to advanced air mobility solutions. I welcome this commitment, which will not only drive progress towards a more sustainable and connected future but also deliver significant economic benefits, high-value jobs and export opportunities across the UK. I look forward to continuing to work in close partnership with government and the regulator to turn these opportunities into reality.”
The funding will be divided between the CAA, receiving GBP 16.5 million in 2025 to 2026, to deliver a regulatory programme to enable drones to fly beyond visual line of sight (BVLOS) and progress toward routine use of air taxis (eVTOLs) in UK skies.
This includes publishing a piloted eVTOL ‘roadmap’, development of ‘drone pathways’ for industry to follow and consulting on concept of operations for uncrewed traffic management (UTM) and Detect and Avoid (DAA) technology. This will make it quicker and easier for industry to prove the safety of these new technologies, deliver the necessary digital infrastructure and make sure that people, property and other aviation remain safe and secure when these new technologies fly in our skies.
Stuart Simpson, CEO of Vertical Aerospace, said flying taxis will make travel quicker, quieter and cleaner. “The UK has an incredible opportunity to lead the world in this new era of aviation, delivering not just greener transport but real economic growth and skilled jobs. This latest funding is another welcome step towards seeing that ambition realised and our world-leading aircraft flying in British skies from 2028.”
The Future Flight Challenge will also receive up to GBP 5 million from DfT and Innovate UK, to support industry to turn these new technologies into profitable business that benefits communities and support growth. This will include regional demonstrations and supporting development of commercial drone and air taxi solutions.
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