Automated Vehicles Act 2024: A deeper dive into its key implications for the automotive sector
The Automated Vehicles Act 2024 (the “Act”) received Royal Assent on 20 May 2024. The Act is intended to provide a legal framework for the safe deployment and operation of self-driving vehicles on public roads in Great Britain. It forms part of the UK Government’s 2025 vision for connected and automated mobility known as CAM 2025 and is based on the recommendations of the Law Commission of England and Wales and the Scottish Law Commission following their joint four-year review into the law relating to automated vehicles. The Government hopes the Act will position the UK as a world-leader in self-driving technology regulation, unlocking the potential of an industry that is estimated to be worth up to £42 billion.[1]
In this article, we explore who will be impacted by the Act, and some of its key implications. We also look at what remains to be done from a regulatory perspective before we can expect to see automated vehicles on public roads in Great Britain.
Who does the Act apply to?
The Act applies to vehicles that are capable of “self-driving” i.e., they are designed or adapted with the intention that a feature of the vehicle will allow it to travel autonomously without human input for some or all of a journey. This technology is distinct from driver assistance technology (such as adaptive cruise control and parking assist) where the driver remains responsible for the vehicle at all times.
The Act creates new legal entities responsible for the way in which an automated vehicle drives and gives drivers immunity from criminal liability arising from how the vehicle is driven while the automated vehicle features are engaged. Civil liability to other road users will be met by insurers’ liabilities under the Automated and Electric Vehicles Act 2018 and redress notices that the Secretary of State may issue to the new regulated bodies under the Act. The Secretary of State has the power to issue these notices if it considers that a regulatory requirement under the Act has not been met and road users have suffered loss, damage or even “inconvenience” or “annoyance” as a result.
The new regulated bodies under the Act are:
- Authorised self-driving entity (“ASDE”): Each authorised automated vehicle under the Act must have an ASDE designated to it. The ASDE will be responsible for the way in which the vehicle drives and for meeting other regulatory obligations in respect of the vehicle. The ASDE will usually be the manufacturer or developer that puts the vehicle forward for categorisation as self-driving.
- Licensed no-user-in-charge operator (“NUiC operator”): Some automated vehicle features will not require an individual to be in the vehicle and in a position to exercise control of the vehicle at any point in the journey (a “user-in-charge”). Such features are referred to in the Act as “no-user-in-charge features” (“NUiC features”). For example, a vehicle with a NUiC feature could travel with only freight or passengers or with nothing in it at all. As will be required for all automated vehicles, those vehicles with NUiC features must have an ASDE. However, in addition to the ASDE, they must also be overseen by a licensed NUiC operator. The licensed NUiC operator will be responsible for the detection of, and response to, problems arising during no-user-in-charge journeys when the NUiC feature is engaged or there is no individual in the vehicle who is exercising control of it.
The Act requires ASDEs and NUiC operators to be of good repute and financial standing, and capable of competently discharging their regulatory obligations. The identity of the ASDE for each authorised automated vehicle will be published in a register. The Act also gives the Secretary of State the power to make secondary regulations for publishing a register of NUiC operators.
What are the key implications of the Act?
The Act covers a broad range of issues related to the deployment and operation of self-driving vehicles in Great Britain. In particular, the Act:
- establishes a new regulatory scheme for vehicles to be authorised in Great Britain as “self-driving”;
- establishes a licensing regime for NUiC operators;
- imposes restrictions on the marketing of automated and other vehicles;
- creates broad information gathering, investigatory and monitoring powers for the Secretary of State. These powers are accompanied by new criminal offences and civil sanctions for failures to comply;
- gives certain powers to the police to stop, seize and detain automated vehicles and for there to be investigations into incidents involving them;
- addresses the legal position of the user-in-charge of an automated vehicle;
- adjusts the existing body of law relating to motor vehicles to account for this new technology; and
- makes provision for the licensing of automated passenger services.
Further details on the key implications of the Act are set out at a high-level below.
1. Regulatory scheme for automated vehicles
For a vehicle to be authorised for use as an automated vehicle on public roads in Great Britain, it must satisfy the ‘self-driving test’ and meet any applicable initial authorisation requirements that the Secretary of State may impose under secondary regulations.
According to the Act, a vehicle will satisfy the self-driving test if: (a) it is designed or adapted with the intention that a feature of the vehicle will allow it to travel autonomously, and (b) it is capable of doing so, by means of that feature, safely and legally.
In this context, driving autonomously means that the vehicle is being controlled not by an individual but by equipment of the vehicle, and neither the vehicle nor its surroundings are being monitored by an individual with a view to immediate intervention in the driving of the vehicle.
The safety aspect of the self-driving test will be assessed by reference to a ‘statement of safety principles’, which the Secretary of State is required to prepare. These principles must be framed with a view to securing better road safety from the use of automated vehicles. They must also be the subject of a consultation so relevant stakeholders can expect to have input into these when they are published.
The legal aspect of the self-driving test will be assessed by reference to whether the vehicle drives with an “acceptably low risk” of committing a traffic infraction.
Conditions may also be attached to an authorisation if, for example, the vehicle is only capable of satisfying the self-driving test in certain locations or circumstances, such as on a motorway during daylight hours. The ASDE is the legal entity that is responsible for ensuring the vehicle meets the applicable authorisation requirements and conditions on an ongoing basis. If it does not, the Secretary of State has the power to suspend or withdraw the authorisation. Civil sanctions (including fines) can also be imposed.
2. Licensing regime for NuiC operators
The Act provides for a new licensing regime and register for NuiC operators. This licensing regime will aim to ensure that a licensed NuiC operator should have general responsibility for the detection of, and response to, problems arising during a no-user-in-charge journey overseen by the operator. The regime will be set out in forthcoming regulations, which will cover the grant, retention, variation, renewal, expiry, suspension, or withdrawal of licences. It is envisaged that conditions may also be attached to individual licences. As with a failure by an ASDE to comply with its authorisation requirements, NuiC operators can also be subject to civil sanctions (including fines) for failure to comply with their operator licensing requirements.
3. Marketing restrictions
The Act seeks to address the concern that users of vehicles with driver assistance technology could disengage from the driving task when it is not safe to do so. The Act does this by creating new offences to ensure that: (a) only authorised automated vehicles are marketed using words or symbols reserved for such vehicles, and (b) other types of vehicles are not marketed in a way that could lead drivers to believe that they do not need to pay attention to the road.
It remains to be seen what specific words and symbols will be subject to these restrictions. These are to be specified by the Secretary of State in secondary regulations.
4. Information gathering, investigatory and monitoring powers
The Act contemplates a range of information-gathering powers, including for example requirements to provide information as part of the authorisation process for an ASDE or as part of the licensing requirements for a NuiC operator. The Act also empowers the Secretary of State to issue a notice to a regulated body requiring the production of information or attendance of an individual at an interview. In addition, where such a notice is not complied with or is not appropriate in the circumstances, the Act provides for a number of investigatory powers including to grant a warrant to enter/search premises, examine/seize information or items on the premises, and require a person on the premises to provide information. The Act also sets out penalties for non-compliance with a warrant or a requirement to provide information.
The Act requires the Secretary of State to put in place arrangements for monitoring and assessing the performance of authorised automated vehicles on roads and public places, including the extent to which that performance is consistent with the statement of safety principles. The Secretary of State must publish an annual report setting out the conclusions of this monitoring and assessment. The Secretary of State must also put in place arrangements to identify the occurrence and cause of incidents involving authorised automated vehicles on roads/other public places and to determine whether any enforcement powers should be exercised in response to those incidents.
5. Policing and investigation
The Act creates additional policing and investigation powers. In particular, it makes provision to enable existing stopping powers to be exercised against automated vehicles. It also gives the police power to seize and detain automated vehicles if they suspect that the vehicle has or is about to commit a road traffic offence. However, the seize and detain powers cannot be exercised until secondary regulations are in force that cover what happens to seized or detained vehicles.
Another key aspect of the Act is investigations into incidents involving automated vehicles. The Secretary of State is required to appoint one or more persons in the civil service as inspectors. Their role will be to identify, improve the understanding of, and reduce the risks of harm arising from the use of authorised automated vehicles in Great Britain. As part of this, the inspectors are given the power to require individuals to assist with their investigations, and to gain access to roads, buildings, dwellings, and vehicles for the purposes of those investigations. However, importantly, the inspectors’ role will not be to establish blame or liability on the part of any person in relation to a particular incident. The Government has indicated that this approach has been guided by international standards (such as in the aviation industry) and is aimed at ensuring that an inspector can, as far as possible, report factually and neutrally.
6. Legal position of users-in-charge
An individual will be a user-in-charge of a vehicle if: (a) the vehicle is an authorised automated vehicle with an authorised user-in-charge feature, (b) that feature is engaged, and (c) the individual is in, and in position to exercise control of, the vehicle, but is not controlling it.
In principle, a user-in-charge will not be responsible for the way in which a vehicle is driven if the user-in-charge is not controlling it at the time of an act that would constitute an offence. However, there are certain exceptions to this rule, which could expose the user-in-charge to liability. This includes where the offending act results from the individual’s conduct after ceasing to be the user-in-charge (e.g., following the issuing of a transition demand and the expiry of the transition period), where such conduct falls below the standard that could reasonably be expected of a careful and competent driver in the circumstances.
Subject to the above, the user-in-charge will otherwise be considered to be the driver of the vehicle, and existing legislation will apply to the user-in-charge as it would apply to any other driver acting in the same way.
7. Adjustments to existing motor vehicle legislation
The Act provides for the updating of the existing type approval legislation to make it more suitable for vehicles that are designed to travel autonomously or whose motion can be controlled other than by an individual in the vehicle. The Act also updates the Road Traffic Act 1988 to allow for roadside testing of vehicles to determine whether they comply with authorisation requirements or operator licensing regulations. Finally, the Act provides for secondary regulations which may impose a requirement on traffic regulation authorities to provide prescribed information about relevant traffic regulation measures in their area.
8. Licensing of automated passenger services
The Act makes provision for those that wish to provide ‘automated passenger services’ by requiring them to obtain permits for doing so. This is aligned with the Government’s objective to bring benefits to those in rural areas and increase accessibility for those who are unable to easily travel independently.
According to the Act, an automated passenger service is a service that consists of the carrying of passengers in a road vehicle that: (a) is designed or adapted to travel autonomously, or (b) is being used for a trial with the aim of developing automated vehicles. Therefore, this enables not only vehicles which have already satisfied the self-driving test and been authorised as automated vehicles to be granted a permit, but also vehicles operated under a trial with a safety driver.
One of the key effects of the permit is to disapply existing taxi, private hire vehicle and bus legislation insofar as a permit holder is providing an automated passenger service in areas and vehicle types specified in the permit.
Other conditions may be attached to a permit in relation to, for example, the period of its validity, and information sharing obligations with the appropriate national authority, other public authorities, and private businesses (such as vehicle manufacturers and insurers). If the permit holder does not comply with the permit conditions, the appropriate national authority has the power to suspend or withdraw the permit.
A framework for a driverless future
The introduction of the Act has been welcomed by industry as a positive step towards facilitating the safe deployment and operation of self-driving vehicles on public roads in Great Britain. However, the Act is principally a framework that sets out wide-ranging overarching principles. Secondary regulations containing further detail on how the Act will apply and technical standards for the vehicles are required to bring it to life. For example, this includes the statement of safety principles, authorisation requirements, operator licensing requirements, and restricted terms for marketing authorised automated vehicles.
Given the pace of technological change, it makes sense for this detail to sit outside the Act, as it will likely require more frequent updates over time. However, until the secondary regulations and standards are in place, the practical application of the Act is limited.
When the Act was passing through Parliament, it was indicated that consultations on the secondary regulations would be launched in the months following Royal Assent. However, given the general election on 4 July 2023, it seems inevitable that this timeline will slip, even though the Act had broad cross-party support during its passage.
Next steps
The main provisions of the Act will come into force on a day appointed by the Secretary of State in secondary regulations. There may also be transitional provisions made in connection with certain aspects of the Act.
In the meantime, as noted above, we await the secondary regulations which are to contain further detail on the how the Act will apply and technical standards for the vehicles it will impact.
Alongside this, a regime will also need to be implemented for the trialling of self-driving vehicle services on public roads, in line with the Government’s CAM 2025 strategy. This is crucial for the industry to gain public trust in this new technology.
How CMS can help
It will be important for industry stakeholders to play an active role in shaping the secondary regulations under the Act to ensure that they are fit for purpose. CMS has extensive experience of supporting clients with their public policy advocacy, including advising on draft regulations, contributing to public consultations, and submitting proposals for amendments.
In addition, as a full-service international law firm, CMS is well-equipped to advise industry stakeholders on their implementation efforts for the Act (and forthcoming secondary regulations) and on the commercialisation of their automated vehicle technology. This includes advising on how the Act compares with steps being taken in other jurisdictions to regulate the same technology, and the establishment of strategic partnerships with other commercial parties to maximise the business opportunities presented by this rapidly growing industry.
Please feel free to contact any of the key contacts listed for this article if you have any questions or wish to discuss how CMS can support your business.
[1] Self-driving vehicles set to be on roads by 2026 as Automated Vehicles Act becomes law - GOV.UK (www.gov.uk)
