British startups Vertical Aerospace and Windracers are backing a UK government initiative to drive smarter regulation and cut red tape.
On May 5, 2026, the UK announced a $63.3 million (£46.5 million) investment aimed at drone and electric vehicle takeoff and landing (eVTOL) aircraft technology.
Under the initiative, around $36 million (£26.5 million) will be used to make it easier for drones to be used in everyday public services and bring eVTOL aircraft into more routine use across the UK.
The scheme includes speeding up approvals for drone operations for emergency responses, medical logistics and infrastructure inspection, driving forward regulation to get flying taxis in the sky from 2028.
Delivered through the Civil Aviation Authority (CAA), the funding will cut red tape and support the regulatory, digital and security foundations needed to bring drones and advanced air mobility (AAM) solutions to fruition.
“We’re backing the next generation of British aviation innovators with nearly £50 million to drive drone regulation reforms and unlock barriers to growth that will create jobs, lower emissions and further the UK’s world-leading aviation reputation,” said Keir Mather, the UK’s Aviation, Maritime and Decarbonisation Minister.
The government said it wants to “focus on faster, more predictable approvals”, while “maintaining the UK’s high safety standards”.
The announcement was welcomed by Stuart Simpson, CEO of Vertical Aerospace, and Stephen Wright, Founder of Windracers.
Vertical Aerospace is of the world’s leading air taxi developers while Windracers’ fully operational ULTRA drone is already delivering support in complex environments including Ukraine.
Simpson said: “This is a welcome investment in the sector by the government. To lead in advanced air mobility requires a regulatory system that can move at pace while maintaining the highest safety standards. The UK’s CAA has been a serious and constructive partner. This investment is a further step towards positioning the UK at the leading edge of the eVTOL sector, as it moves towards commercial operations.”
Wright added: “This is a significant step forward for the UK’s drone and advanced air mobility sector. Targeted investment alongside practical regulatory reform is exactly what is needed to unlock real-world operations at scale. At Windracers, we see first-hand how autonomous aviation can strengthen supply chains, support critical services and operate reliably in some of the most challenging environments.”
UK to develop numberplate ID system for drones
As part of the government initiative, nearly $27.9 million (£20.5 million) has also been committed to develop a numberplate ID system for drones.
The money will be used to crackdown on ‘faceless’ drones, which can be used in suspicious or illegal activity, through the first bespoke drone identification system.
Using hybrid remote ID, the drone’s identity and location will be transmitted during flight so nearby devices can pick it up, sharing flight details through a secure online system that authorized people can access even when they are not nearby and recording historic data.
“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,” added the Minister.
