Britain urged to invest in the race for space

By Sean Rayment

The UK Government has been urged to invest in the global “race for space” by a House of Lords committee.

In a report focused on growing the UK’s space economy, the House of Lords cross-party committee said the government should provide clear leadership, strategy, and investment to avoid missing the opportunity to become a “lead player” in the global space sector.

“Only the most strategic and forward-looking nations will capture the economic and scientific rewards of this new space age,” said committee chair Baroness Catherine Ashton.

“With the right leadership, coordination, 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 that transformation or risk being left behind.”

The report recommended that the government provide a clear strategic direction and framework for space development, while also appointing a dedicated space minister and space champion to drive cross-government coordination and industry engagement.

It also highlighted the importance of space technology to the UK, with some estimates suggesting that over £450 billion of the UK economy depends on the space sector.

“The value of space to modern society is under-appreciated,” the report said. “Satellite services are a Critical National Infrastructure, the disruption of which would create significant challenges across British society. Space science missions also help drive technological innovation, provide a crucial customer base for space firms, and inspire future generations of scientists and engineers.”

The report warned that the UK has become too dependent on Elon Musk and his company SpaceX for the success of its space programme, and must urgently seek greater independence to prevent the “politicisation” of these services.

It added that half of Britain’s satellites are now dependent on Musk’s company, warning that the UK’s capacity risks being politicised as a result.

The report also found that the UK has lost out on European cooperation because of Brexit.

The peers noted: “As part of the UK’s withdrawal from the EU, it ceased to be a part of the EU’s space programme.

The UK no longer participates in the Galileo programme, which means UK firms cannot access industrial contracts and UK institutions cannot use Galileo’s secure functionality, which provides an enhanced service for military and critical infrastructure purposes (though individual and business use of Galileo remains permitted).”

The committee suggested that the UK could benefit from rejoining Galileo and a new programme called IRIS — the Infrastructure for Resilience, Interconnectivity and Security by Satellite — which aims to connect around 290 satellites across Europe.

The report also warned that Britain could lose out in forthcoming EU developments, including a major expansion of space investment designed to reduce dependence on the United States and strengthen military cooperation through satellites. A new EU law will set standards for companies both inside and outside the EU, which they will have to comply with.

“The act will require UK-based providers of space-based data and services to comply with extensive and relatively onerous conformity requirements. The European Space Policy Institute estimated the potential cost burden of the legislation to be around 10 per cent for satellite manufacturers and 20 per cent for launch services firms.”

The UK remains a leader in the sector, with 60 UK universities conducting space research, and companies specialising in satellite innovation and space debris reduction. There is also a growing market in the City for satellite insurance.

But the country is suffering from a skills shortage in space development and piecemeal funding given to small firms rather than long term funding for bigger projects.

The committee stated that, far from being the preserve of astronauts and rockets, space technology underpins daily life on Earth — from GPS satellites guiding transport networks and smartphones, to banking systems relying on satellite timing to secure global transactions, and weather satellites supporting farmers. Climate scientists and urban planners also use space data to track emissions and design sustainable cities.

The UK’s major space research centre at Harwell also faces challenges in expanding, as the land adjacent to it is contaminated by nuclear waste.

Nevertheless, peers remain optimistic about the future of space technology in the UK.

Baroness Catherine Ashton 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, coordination, 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 that transformation or risk being left behind.”