Driverless cars will be allowed on Britain's motorways for the first time by the next year, George Osborne is to announce in his Budget next week.

The Chancellor said that, tests will begin on a small number of roads within months, before extended to A-roads and motorways,  later this year.

The first trials are expected to be carried out on the roads of Keynes, Milton, Coventry,  Bristol and Greenwich.

Mr Osborne said that, "driverless cars could represent the most fundamental change to transport since the invention of the internal combustion engine. Naturally we need to ensure safety, and that’s what the trials we are introducing will test.”

“If successful, we could see driverless cars available for sale and on Britain's roads, boosting UK jobs and productivity," he added.

"At a time of great uncertainty in the global economy, Britain must take bold decisions now to ensure it leads the world when it comes to new technologies and infrastructure. That is what my Budget next week will seek to do," Osborne said.

Nandini