Government needs to take action if UK is to be a winner in new race for space
4 Nov 2025 01:25 PM
The House of Lords UK Engagement with Space Committee has released its report, ‘The Space Economy: Act Now or Lose Out’.
The report finds that the global space economy is primed for growth and that the UK possesses the potential to take advantage of the economic and security benefits brought by satellite technology.
Key recommendations
The Committee recommends that the Government should:
- Provide a coherent strategic direction with clear delivery plans— the UK space sector lacks the strategic direction necessary for success. The Government needs to provide clear, consistent and funded plans on the delivery of core national space capabilities. This will involve making choices.
- Focus on the development of multi-use technologies—the UK’s space strategy must prioritise those national capabilities which meet UK security and defence requirements as well as offering multi-use potential for commercial exploitation and sectoral growth in the UK.
- Ensure that structures of government are adequate to deliver cross-governmental space policy—existing government structures impede the design and delivery of UK space policy. The UK requires a dedicated Space Minister, working across the Department for Science, Innovation and Technology and the Ministry of Defence, who should be responsible for driving cross-government working. Government also needs a designated Space Champion to lead government engagement with industry, investors, and academia.
- Reform the UK’s space funding model to allow firms to grow and scale—the UK’s funding model for space requires a decisive shift from the current grant-based approach designed to propel research and development, to one in which government procurement is used to crowd in private investment and strengthen national capabilities.
- Ensure the UK remains a world-leader in future space regulation— the fast-moving nature of the global space economy means that states with agile, forward-looking regulation will hold an immense advantage.
- Address skills challenges within the space sector—the space skills challenge is one of the core impediments to development of the sector. The Government needs to create a Space Skills Taskforce with the authority to drive skills development policy and maintain UK competitiveness.
- Adopt a strategic approach to international partnerships—the UK needs to be clear-eyed about where its international efforts should be concentrated and ensure that space partnerships are a core consideration in wider foreign policy development.
- Promote space safety and sustainability on the international stage—the space domain is subject to problems, such as space debris, which cannot be solved by the UK alone and require collective action. Ensuring the safety of space as an operating environment should be a diplomatic priority for the UK.
The report notes that:
- The UK economy is heavily reliant on space – 18% of GDP is underpinned by satellite services. A wide range of industries, from agriculture to finance, rely heavily on satellite infrastructure.
- The publication of the National Space Strategy in 2021 was a positive development, but action is needed if it is to be delivered upon.
- The UK has a host of innovative space start-ups which struggle to scale. If firms can’t access the capital they need in the UK, they will be tempted to move operations elsewhere.
- The global space economy is changing. Changes in US space policy coupled with a more active EU have changed the international environment in which the UK operates. Countries across the globe are developing space programmes, offering partnership opportunities for the UK.
- Space debris represents a fundamental challenge to the future safety of the space environment. There are over a million pieces of debris in-orbit which could harm a satellite, but there is no binding international regulation on debris creation.
Chair's comments
Baroness Ashton, Chair of the UK Engagement with Space Committee yesterday said:
“Only the most strategic and forward-looking nations will capture the economic and scientific rewards of this new space age. With the right leadership, co-ordination, and investment, the UK can be there. Space is transforming the world and our report found much to be positive about. Britain should play a role in leading this transformation. If not, it risks being left behind.”
Further information