London blocks driverless taxis as UK publishes new rules
Key Points
- The UK government has published formal guidance setting out a three-stage approval process for companies wanting to operate driverless passenger services on public roads.
- Law firm Herbert Smith Freehills Kramer, which analysed the guidance in detail, notes that requirements cover the vehicle, the operator's organisation, and the specific service being run.
- TfL Commissioner Andy Lord confirmed no autonomous vehicle currently meets TfL's private hire licensing requirements, effectively blocking driverless taxis in the capital.
- Outside London, deployment pace will vary by city, as operators must formally engage with local authorities as a condition of their Automated Passenger Service permit.
- The pilot feeds into the Automated Vehicles Act 2024, with a full regulatory regime targeted for the second half of 2027.
Transport for London has warned that no autonomous vehicle currently meets its licensing requirements, effectively barring driverless taxis from the capital as the government publishes the first formal rules for operating self-driving passenger services on UK roads.
The Department for Transport guidance, published in late March 2026, sets out a three-stage approval process that any company must clear before putting a driverless vehicle on public roads.
Law firm Herbert Smith Freehills Kramer, which published a detailed breakdown of the guidance, describes the framework as requiring operators to satisfy layered requirements covering the vehicle itself, the operator’s organisation, and the specific service being run.
Vehicles must first be registered as self-driving capable under the Automated and Electric Vehicles Act 2018, a process that requires an approval certificate confirming the vehicle meets relevant technical safety standards.
Operators must then obtain a Vehicle Special Order from the Vehicle Certification Agency, a legal exemption under the Road Traffic Act 1988 that covers situations where an autonomous vehicle cannot comply with standard construction and use rules, such as the prohibition on leaving an engine running unattended.
The automated driving system must reach a safety level at least equivalent to a competent and careful driver, and must be demonstrably protected against cyber threats.
Operators must also show they have effective systems in place to detect and respond to problems during live journeys.
The passenger permit adds a third hurdle
Any service carrying paying passengers requires further approval on top of the first two: an Automated Passenger Service permit.
Herbert Smith Freehills Kramer notes that operators applying for this permit must demonstrate good repute and financial standing, as well as the organisational competence to run services safely, reliably, and lawfully.
Comprehensive operational plans, deployment safety plans, and incident management plans are all required.
Operators must also engage formally with local authorities and transport bodies in every city where they intend to run, which means the practical availability of driverless services could look very different from one UK city to the next.
Why London is a different problem entirely
Even operators who clear all three stages face an additional barrier in the capital.
Any paid passenger service in London falls under Transport for London’s jurisdiction rather than the Department for Transport’s.
TfL Commissioner Andy Lord told the London Assembly in April that no autonomous vehicle currently operating in the UK meets TfL’s private hire licensing standards.
Deputy Mayor for Transport Seb Dance confirmed that any future driverless ride service in London would need to operate under TfL’s existing taxi and private hire regulatory scheme, for which no operator currently qualifies.
That assessment effectively removes London from the near-term picture, regardless of what the national pilot framework permits elsewhere.
The pilot scheme covers roads in England, Scotland, and Wales, and operators in cities outside London will engage with local authorities rather than TfL.
Because that engagement is a formal condition of the permit process, early announcements from city councils will be the clearest signal of where driverless services are likely to appear first.
Herbert Smith Freehills Kramer observes that practical differences are likely to emerge across different UK cities as a result, with some moving considerably faster than others, depending on local authority appetite.
The pilot sits within the broader framework of the Automated Vehicles Act 2024, with full implementation of the regulatory regime targeted for the second half of 2027.
The government has been explicit that data gathered during the pilot period will directly shape the final rules on liability, safety standards, and passenger rights.
