Councils are being urged to bid for a share of £2m in order to use new technology to improve journeys for motorists.
The Department for Transport said it would fund proposals such as roadside sensors to provide drivers with real-time traffic information or new technology that allows vehicles to communicate with each other.
Councils will be expected to cover at least 5% of the project’s costs – which should be complete by March 2018 - with bids ranging between £30,000 to £300,000.
Roads minister Andrew Jones said: ‘I want to deliver better, more enjoyable journeys and this £2m fund will help councils invest in new technology to enhance the experience of driving.
‘Britain has a proud history of innovation and I am delighted that councils will be able to use this money to develop systems to make journeys easier and safer.
Councils have until the end of September to apply for the funding.