Government pledges £20 million to support drones and flying taxis

Drone flying near a private house
image: ©akiyoko | iStock

The UK Government has announced £20m to support drone operations for emergency services and eco-friendly flying taxis

The Aviation Minister confirmed today (1 April 2025) that commercial-scale drone services and flying taxis could soon be a reality, following a £20m investment to launch new flight technologies.

Support the UK’s growth with the Plan for Change

The new funding will propel the UK to growth, which is a priority of the Plan for Change. It will also maximise opportunities for cheaper and improved public services while cutting carbon emissions.

 The funding will advance aviation technology to support the NHS, assist police forces, help inspect and survey critical infrastructure, and unlock the potential of expanding delivery services for businesses and communities nationwide.

Aviation Minister Mike Kane said: “I want 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 and 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.”

Simplifying regulations for drones and flying taxis

The Chancellor has confirmed plans to streamline regulations to enable a 2-year airspace change for drone operations. This will enable operators to fly safely for longer and gather data to inform future services.

Other regulation changes include allowing emergency services, including firefighters and paramedics, to use drone services, noise exemptions for drone trials within the Airspace Change Process, and simplifying the drone operational application process to enable them to get flying faster and easier.

Duncan Walker, CEO of Skyports and Co-Chair of the Future of Flight industry group, said: “This additional government funding is a vital boost for the UK’s leadership in next-generation aviation. 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 the government and the regulator to turn these opportunities into reality.”

The funding will drive progress in flying taxis

The £20m funding will be divided between the CAA, which will receive £16.5m in 2025 to 2026, to drive 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 an eVTOL roadmap, drone pathways, and UTM/DAA consultations to fast-track safety, infrastructure, and secure airspace integration.

Stuart Simpson, CEO of Vertical Aerospace, said: “Flying taxis will transform the way we move — making it quicker, quieter and cleaner to travel while connecting communities and supporting essential services.

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 receive up to £5 million from DfT and Innovate UK, to support industry in turning these new technologies into a profitable business that benefits communities and support growth.

Mike Biddle, Executive Director of Net Zero, Innovate UK, said: “Innovate UK is excited to build on the highly successful work of the Future Flight Challenge by working in partnership with DfT through this joint funding. We look forward to working with industry, end-users, DfT, DSIT and the CAA as we accelerate the transition from innovation to commercial operations.”

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