As the space sector continues to reach higher levels, and weeks after it gained significant funding to use data to help transform the delivery of public services around the country, the UK Space Agency (UKSA) is to become part of the Department for Science, Innovation and Technology (DSIT), as part of a plan to boost support for the country’s satellite sector.
Founded in 2010 and currently operating as an executive agency of DSIT, the UKSA works to create an ecosystem comprising investors, scientists, engineers, academia and research labs to capitalise on a sector that it calculates generates an annual income of £18.9bn. The agency’s stated aims include catalysing investment to advance space-based technology and maximise UK space sector growth; delivering missions and capabilities that responsibly meet national needs and advance our understanding of the universe; and “championing the power of space” to inspire people, offer greener, smarter services and support a sustainable future.
Employing 52,000 people across the country, its staff includes scientists, engineers, commercial experts, project managers and policy officials. It catalysed investment and revenue of at least £2.2bn for the UK space sector in 2024/25.
The change is planned for April 2026, and is designed, said DSIT, to bring together the people who shape space policy and those who deliver it, cutting duplication, reducing bureaucracy and putting public accountability at the heart of decision-making. The unit will keep the UK Space Agency name and brand, and be staffed by those from both the agency and DSIT.
The UK government believes this will drive up efficiency in line with its plan for change, cutting red tape and making Whitehall more agile. By tackling bottlenecks and uncertainties that UK firms in this field and beyond currently face, and ensuring regulation keeps up with the fast pace of innovation in this area, the UK government believes it can help encourage investment in nascent space activities like space junk removal, in-orbit refuelling and repair services that are expected to be highly lucrative in the decades ahead.
The UK government has also published over 60 recommendations from industry leaders on how to improve regulation for space missions, including Rendezvous and Proximity Operations (RPO) – where spacecraft work together in orbit.
It sees these missions as key to unlocking a future market worth £2.7bn by 2031, according to its UK Space: In-space orbit servicing and manufacturing priorities paper. With the right support, the UK government believes the country’s space firms could capture a quarter of the global market for in-orbit servicing, assembly and manufacturing. The RPO sandbox report was delivered by three firms with expertise in the field: Astroscale, ClearSpace and D-Orbit, working in collaboration with the Civil Aviation Authority, the UK Space Agency and DSIT.
For current UK Space Agency CEO Paul Bate, having a single unit “with a golden thread” through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality.
“I strongly welcome this improved approach to achieving the government’s space ambitions,” he said. “In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability.”
According to UK space minister Chris Bryant, “you don’t need to be a rocket scientist to see the importance of space to the British economy”.
Commenting on the announcement, he added: “This is a sector that pulls investment into the UK and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites. Bringing things in-house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector.”
