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Driverless cars could be on roads in Kent as early as next year.
Chancellor George Osborne is expected to confirm the launch of trials during a Budget statement on Wednesday.
He is due to announce a £15 million 'connected corridor’ from London to Dover to help vehicles communicate wirelessly with infrastructure and other vehicles around them.
"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," said Mr Osborne, according to a report in the Daily Mirror.
"That’s what my Budget next week will seek to do.
"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.”
Engineers say driverless cars, which can alert motorists to accidents and traffic jams, could eliminate up to 95% of crashes.