UK small-medium enterprises secure funding to transform future of freight

Published on: Saturday, 8th April 2023
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Department for Transport

Drones will be used to deliver packages to remote locations as part of nine new innovative freight projects which have been awarded £1.2 million in Government funding.

The first winners of the Freight Innovation Fund (FIF), backed by £7 million overall, have been announced today (11 April) and could help create cleaner, more innovative ways of delivering freight around the country. This could lead to reduced emissions, increased numbers of high-skilled jobs and better delivery services in hard-to-reach parts of the UK.

The winners include a firm which will use drones to improve island-to-island connectivity in the Orkney Islands, and another which is developing a four-wheel, electrically assisted lightweight delivery vehicle to help reduce road emissions.

The fund is one part of a Future of Freight plan launched last year, setting a strategy to work closely with industry to deliver a world-class freight system which supports economic growth, and builds on the measures already taken to tackle the global HGV driver shortage.

Roads Minister Richard Holden said: “Whether it’s drones for deliveries on remote islands or zero emission buggies – we want to invest in the future technology which could transform how we move goods around the country, while reducing emissions and traffic, and creating skilled jobs.
“The Freight Innovation Fund gives innovators the opportunities to test their ideas and help our freight industry become greener and more efficient – unlocking better connectivity and boosting growth across the country.”

The winning projects are led by small and medium-sized enterprises (SMEs) who have designed innovative technology and who are partnered up with existing industry companies to explore the viability of these solutions in real-world conditions.

In 2022, the Government published the Future of Freight plan, the first-ever cross-modal and cross-government plan for the UK freight transport sector. Government launched the Freight Innovation Fund competition earlier this year in January.

The Freight Innovation Fund builds on previous government initiatives designed to support increased research and development in the freight industry.

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