As part of the measures, red tape will be slashed to allow tech firms to test driverless vehicles on public roads by 2021.

Speaking on BBC Radio 4's Today programme, Mr Hammond said: ""It will happen, I can promise you. "It is happening already... It is going to revolutionise our lives, it is going to revolutionise the way we work. And for some people this will be very challenging.”

"The challenge for us is making sure that the million-odd people in the UK who drive for a living, over the next 10, 20 years or so, as driverless vehicles come in, are able to retrain and reskill so they can take up the many, many new jobs that this economy will be throwing up."

The Chancellor wants fully driverless vehicles on the UK’s roads by 2021 but has admitted he had never been in one.