The UK Government has announced a major push to accelerate the adoption of emerging technologies across public services, with a new £8.9 million fund aimed at cutting regulatory red tape and fast-tracking innovation.
Through the Regulatory Innovation Office (RIO), 16 projects will receive support to streamline outdated rules and speed up the safe deployment of technologies ranging from AI in healthcare to drones delivering medicines in remote parts of the UK.
Projects backed in this funding round include AI tools for the London Fire Brigade to assess building fire risks via smartphone, street-sweeping robots in Milton Keynes, and flood risk modelling AI for Northumberland County Council. The Medicines and Healthcare products Regulatory Agency (MHRA) will receive funding to trial AI assistants that could help assess clinical trials more efficiently, while Argyll and Bute Council will pilot new drone standards to deliver medicines across the Scottish islands.
Cutting Red Tape to Speed Up Public Service Innovation
Science and Technology Secretary Liz Kendall said the reforms were about aligning regulation with the pace of technological change.
“Every day across the country, new products are being invented that have the potential to transform lives and revolutionise public services,” she said. “But all too often, we are held back by red tape that simply hasn’t kept pace with scientific and technological advances.
“That’s why we’re backing our regulators to work together with industry, to make the rules fit for purpose and unlock breakthroughs that will deliver national renewal by driving our economy forwards—faster, easier, and safely.”
The RIO, chaired by Lord Willetts, was established to reduce regulatory barriers for innovative businesses in high-growth sectors such as engineering biology, space, AI, and digital health – areas expected to be worth billions to the UK economy.
Since its creation last year, the RIO has supported reforms that have already enabled innovation in critical infrastructure and health services. For example, regulatory flexibility helped one firm secure a £23 million contract with National Grid to inspect power lines using drones, a capability that would previously have faced prohibitive delays.
The RIO’s One Year On report, published this week, highlights how streamlined risk assessments for drone operations have accelerated projects in a sector forecast to be worth £45 billion by 2030. It also cites new regulatory work supporting the UK’s space industry, including missions focused on satellite life-extension and debris removal, potentially unlocking a £2.7 billion market by 2031.
Strengthening the UK’s Regulatory Landscape
Lord Willetts said the RIO’s collaborative model was key to driving the Government’s digital innovation ambitions.
“The UK’s future prosperity depends on harnessing innovation,” he said. “The Regulators’ Pioneer Fund is a powerful catalyst, enabling our regulators to work with industry and researchers to bring high-potential technologies to market more swiftly and safely.”
The Regulators’ Pioneer Fund, now in its fourth round, supports regulators to test more flexible, efficient approaches that allow innovators to bring products and services to market faster. Previous rounds backed projects in health, transport, and energy.
The RIO is also expanding its partnerships with CBI, TechUK, and the Start Up Coalition to give businesses clearer routes to raise regulatory challenges. A collaboration with IBM will see an AI ‘hackathon’ launched in Spring 2026, focused on practical applications of emerging technologies in public service delivery.
