Users of driverless cars could be allowed to watch TV behind the wheel under new rules.
Under proposed Highway Code rules, insurance companies would be liable for crashes of self-driving cars - not motorists, the Department for Transport said (DfT).
Users of self-driving cars would not be held responsible for crashes in those circumstances.
The DfT intends to allow people using driverless cars to watch TV and films on built-in screens, but it will specify drivers must be ready to take back control of the vehicle when needed.
However, it will still be illegal for motorists of regular vehicles to use a mobile phone.
Self-driving cars aren't currently approved on UK roads, but the first could be given the green light this year.
These actions, which follow a public consultation, were described as an interim measure by the Government to support the early deployment of the vehicles.
A full regulatory framework is expected to be in place by 2025.
The DfT announced in April 2021 it would allow hands-free driving in vehicles with lane-keeping technology on congested motorways.
Existing technology on the market such as cruise control and automatic stop/start is classified as "assistive", meaning users must remain fully in control.
Transport minister Trudy Harrison said updating the Highway Code will be a "major milestone in our safe introduction of self-driving vehicles".
She claimed it will "revolutionise the way we travel, making our future journeys greener, safer and more reliable".
Harrison continued: "This exciting technology is developing at pace right here in Great Britain and we're ensuring we have strong foundations in place for drivers when it takes to our roads.
"In doing so, we can help improve travel for all while boosting economic growth across the nation and securing Britain's place as a global science superpower."
The development of self-driving vehicles could create around 38,000 new jobs in Britain and be worth £41.7 billion to the economy by 2035, according to the DfT.
Steve Gooding, director of motoring research charity the RAC Foundation, said driverless cars "promise a future where death and injury on our roads are cut significantly" but there is likely to be a "long period of transition" while drivers retain "much of the responsibility for what happens".
He stressed the importance of changes to regulations being communicated to drivers.
"Vehicle manufacturers and sellers will have a vital role to play in ensuring their customers fully appreciate the capabilities of the cars they buy and the rules that govern them," he said.
