Driverless cars could be on the UK's roads as early as next January due to measures announced by business secretary Vince Cable.

UK cities are being invited to bid for a share of £10 million worth of investment to host a driverless car trial. Up to three locations could be selected for the trials, which will begin in January 2015 and last for between 18 and 36 months.

The government is calling on cities to collaborate with businesses and research organisations to put forward proposals to become a test location.

A review has also been launched to establish how the UK can remain at the forefront of driverless car technology and ensure the country has an appropriate regime for testing the vehicles.

The review will cover two areas of driverless technology: cars with a qualified driver who can take over control of the driverless car and fully autonomous vehicles where there is no driver.

Science minister Greg Clark said: "Britain is brilliantly placed to lead the world in driverless technology. It combines our strengths in cars, satellites, big data and urban design; with huge potential benefits for future jobs and for the consumer."