The UK has announced a major package of investment and reform into the UK’s space industry in an aim to make the industry competitive and agile.
The funding and reforms will be more focused on four areas that drive economic growth and national security outcomes: Satellite Communications; In Orbit Servicing, Assembly and Manufacturing; Space Domain Awareness; and Launch for assured access to space.
A range of practical tools and support schemes for high-potential companies will complement the record levels of public funding available, to improve access to finance, develop the skills and talent pipeline, and ensure space regulation and standards keep pace with innovation.
Ministers are also open to using the government’s buying power to help British space firms scale faster – driving growth, boosting revenues and bolstering national security and defence.
“The government recognises that the whole of the space sector – from curiosity driven science to commercial satellite services – makes an important contribution to the UK,” space minister Liz Lloyd said.
“But to deliver growth and security for the British people, we need to take a much bolder approach to how we prioritise public funding and support.
“Our vision is clear – to make the UK a competitive, agile space power. We’re allocating £500 million today, on top of ESA funding, to drive forward our priorities and will continue to work closely with industry and investors to maximise private capital flows and unlock the full potential of commercial space.
“This is just the start, as we prepare to publish our full Plan for Space later this year.”
In addition to the £1.7 billion committed to European Space Agency (ESA) programmes in November 2025, the government is allocating more than £500 million to national space programmes:
- £105 million to develop civil capabilities for in-orbit servicing and manufacturing (ISAM) – an emerging market where the UK has a strong competitive edge and opportunities to deliver significant commercial returns and strengthen national resilience
- £85 million to develop the National Space Operations Centre, including £40 million to build a new ground‑based sensing network, supporting the 24/7 requirement to protect satellites and manage an increasingly crowded space environment
- £80 million to deliver the Connectivity in Low Earth Orbit (C-LEO) programme, including for a new £30m funding call opened today to support UK businesses developing smarter satellites, advanced hardware and AI‑enabled data delivery
- £65 million for the National Space Innovation Programme to accelerate breakthrough technologies and boost commercialisation
- £40 million for the Unlocking Space Programme to drive market demand for space technology, develop national security capabilities and attract private investment to support the scale up of UK firms
- £37 million to develop space clusters, building on local strengths and ensuring the benefits of space reach every corner of the UK
- £20 million to accelerate spaceport infrastructure development in Scotland
Source: DIGIT