£10m prize on offer for driverless cars town or city

Last updated at 15:09
To enjoy the CBBC Newsround website at its best you will need to have JavaScript turned on.
Check out the animation of the driverless cars

The UK should become a world leader for the development of driverless cars, the government has announced.

It has offered a £10million prize to help turn a UK town or city into a testing ground for self-driving cars.

It will also review laws next year to make sure it's easier for companies to test them on UK roads.

The town of Milton Keynes is already experimenting with driverless "pods". There are plans to run 100 self-driving vehicles on the town's pavements.

The cars use sensors to avoid collisions.

Read more: Researchers developing driverless cars for UK roads