The UK government has announced £46.5 million in funding to create digital, legal and physical infrastructure to accelerate the development of drones and flying taxis.

The investment, led by the Department for Transport alongside the Home Office and the Civil Aviation Authority, aims to support innovation in next-generation aviation technologies and strengthen security across UK airspace by tackling illegal drone use.

Of the total £46.5 million package, the government said £26.5 million will be used to streamline regulation and remove barriers to adoption, helping to make drone deliveries, emergency response use cases and electric flying taxis closer to becoming commercially viable.

The remaining £20.5 million will fund the development of a new drone identification system designed to help law enforcement track and identify rogue operators.

The government said the proposed system will use hybrid remote ID technology, allowing drones to broadcast their identity and location during flight. This information can be accessed by authorised users via a secure platform, even when they are not physically nearby, while also creating a historical record of drone activity.

The government added that the move will help police better detect and prosecute illegal or unsafe drone usage while improving public confidence in the rapidly expanding sector.

The funding will also support faster approvals for drone operations across areas such as medical deliveries, infrastructure inspection and emergency services, alongside the development of digital systems to simplify application processes for operators.

The government said it is targeting legislation to get flying taxis in the sky from 2028, part of a broader strategy to modernise UK airspace and support high-growth sectors including robotics and AI.

Aviation, maritime and decarbonisation minister Keir Mather said: “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.”

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