BBC recently reported the agreement between Uber and Volvo. The former company struck a deal to buy up to 24,000 driverless cars from Volvo. The purchase is set to commence in 2019 and will continue over the course of three years.

Last year in America, Uber even began testing prototypes made by the Volvo Company. This shows to some extent the seriousness of their agreement as well as the direction that Uber is planning to take. What about the financial terms? According to BBC, that is yet to be disclosed although finance companies like Wilkins Finance estimate the deal to be worth a lot.

The UK also to purchase self-driving cars

It seems Britain also plans to move with technology. A few days back, British Chancellor Philip Hammond told the BBC that in about four years to come, UK residents could be witnessing driverless cars on the roads. According to the Chancellor, Britons should be using complete driverless vehicles by 2021. He believes that that would be one way of preparing the country to take charge and lead the next industrial revolution.

The Chancellor’s announcement came after UK’s largest car manufacturer, Jaguar Land Rover, began testing self-driving cars on the State’s public roads. The trials took place at Coventry city center for several weeks. All the trials rely on sensors that allow the cars to detect signals, traffic as well as pedestrians. However, during every trial, one person was always on board to attend to any emergencies.

What does this mean for the UK budget?

It is okay for the country to want to be at par with or even ahead of the latest technology. But really, is the public ready for that kind of development? First of all, several critics have warned that the technology required for driverless cars to succeed is so far from being ready. For one, Jeremy Clarkson, a former Top Gear host, wrote that he was recently almost killed in a self-driving car.

Writing in the Sunday Times Magazine, the now Grand Tour presenter explained that the particular car he was in made two grave mistakes, which convinced him that the technology was still far off from seamless.

Another concern is the budget. With the government now incorporating new and expensive technology, the public is definitely anticipating for some major changes in the next budget presentation. Previous budgets had promises of salary increments free from income tax, but the Chancellors recent announcement could cancel it all.

Some predictions are that the young public could escape the burden which is most likely to be placed on shoulders of the much grown up public. This prediction stems from the promise by the government to change the threshold at which students loans are repaid. Precisely, students will only be paying back when they earn at least £25,000 per annum. The government is also planning on canceling an increase in the tuition fees, which would have otherwise taken a toll on their accounts.

The effect on other industries

According to CNBC, self-driving cars are set to disrupt more than just the auto industry. Not to ignore the possibility that they have what it takes to create tremendous value for consumers. They will make life much easier by providing significant user convenience and saving drivers time. They will improve passenger safety and make it possible for people to do other things while travelling…these are just among the numerous amazing benefits they can offer consumers.

However, many industries are feared to be at risk of suffering great disruptive shifts from this development. One such industry is the insurance industry. Whereas many accidents occur due to human error, autonomous vehicles are expected to reduce the number of accidents significantly. This is a great thing, but it will, in turn, change the insurance revenue model. In other words, the demand for insurance will not be as high.

Likewise, legal professionals will not be frequently needed to solve cases. This is because some civil trials will be eliminated by driverless vehicles; especially vehicle collision cases. This then means that many professionals who specialize in personal injury and such like cases will have to search for alternative jobs.

Bottom Line

To sum it all up, driverless vehicles are definitely a genius invention. They come with many advantages that will help make life easier for the UK population. The question is, how many people will be able to afford these cars? Once they are purchased by the government, tax rates are more likely to shoot. And the sad part is that the public will be paying taxes to support a product they can barely have themselves.

By Taylor Wilman