Ministers have committed £20.5m to develop a numberplate ID system for drones, as part of a wider £50m package to better regulate and unlock growth in the drone and advanced air mobility sector.

The 'first bespoke drone identification system' will help police crack down on ‘faceless' drones used in suspicious or illegal activity, government officials said. In recent years, major UK airports have faced closures and delays due to suspicious drone activity.

Hybrid Remote ID works by sending out the drone's ID and location during flight so nearby devices can pick it up, sharing flight details through a secure online system that authorised people can access even when they are not nearby and recording historic data.

Security minister, Dan Jarvis, said: 'This funding will create a numberplate system for the skies. Law enforcement will be able to identify and take action against those who break the law, taking drones out of the sky and protecting the public.'

Delivered through the Civil Aviation Authority (CAA), the £50m funding will also 'cut red tape and support the regulatory, digital and security foundations needed to bring drones and advanced air mobility – such as electric flying taxis – into more routine use across the UK'.

Aviation minister, Keir Mather, said: 'We're backing the next generation of British aviation innovators with nearly £50m to drive drone regulation reforms and unlock barriers to growth that will create jobs, lower emissions and further the UK's world-leading aviation reputation.

'Innovation must go hand in hand with strong security – that's why over half of our investment will develop a new ID system to track drones in real-time, supporting emergency services and building public confidence in an industry that could be worth up to £103bn by 2050.'

The funding package has allocated £26.5m to drive smarter regulation to make it easier for drones to be used in everyday public services. This includes speeding up approvals for drone operations for emergency responses, medical logistics and infrastructure inspection, and driving forward regulation to get flying taxis in the sky from 2028.

Drone operators will also benefit from a streamlined digital application process, reducing the time required to navigate regulations and prepare applications.

Sophie O'Sullivan, director of future safety and innovation at the UK Civil Aviation Authority, said: 'Our work going on right now is laying the foundations for commercial operation in the future, unlocking routine drone deliveries, long-range inspections and hospital logistics.

'This vital funding supports the next generation of aerospace, strengthening safety and bringing economic growth for the UK.'