The UK space industry promotes reforms as the government merges the UK Space Agency with DSIT
The UK space industry will undergo major changes after the reforms announced by ministers aim to reduce the traditional Chinese tape festival, simplify decision-making and accelerate one of the fastest-growing industries in the UK.
Under the plan, the UK Space Agency (UKSA) will officially become part of the Department of Science, Innovation and Technology (DSIT) by April 2026. The move is designed to eliminate duplication throughout Whitehall and ensure access to strategies, policies and delivery under direct ministerial supervision.
These changes form part of the government’s broader “change plan” that aims to simplify the role of public institutions, increase accountability and eliminate barriers to bureaucracy.
The UK aerospace industry includes over 1,100 companies, contributing £2.3 billion to the economy – increasingly important. Nearly one-fifth of the UK’s GDP depends on satellite services from navigation to communications.
However, the industry faces challenges, from growing international competition to growing space debris issues. Ministers believe that structural changes will help the UK maintain the forefront of new technologies, including the repair, repair and manufacturing of orbit satellites – an estimated global market worth £2.7 billion by 2031.
Sir Chris Bryant, the newly appointed Space Minister, said: “You don’t need to be a rocket scientist to see the importance of space to the British economy. The department supports thousands of skilled work and drives innovation across transnational defense, science and technology.
Combining policy and delivery will allow us to act faster, integrate better and maintain ambitions, making Britain a global player in space. ”
Dr. Paul Bate, CEO of the British Space Agency, said the merger would make it easier to transform strategy into action: “Through strategy, policy and delivery, a single unit with golden clues will make it easier to transform the country’s space goals into reality. We will work more closely with the ministers to support the British space sector and the country.”
UKSA will retain its name and brand, but combines staff and expertise with DSIT. The government said the transition will be carefully managed to maintain ongoing plans, including preparations for the first active space debris removal mission in the UK in 2028.
In addition to structural reforms, more than 60 suggestions have been issued to improve the normative approach to space missions.
Reports on Rendezvous and Proximity Operations (RPOs) – Spacecraft Terminals, refueling or repairing each other in orbit – highlights the need for clear regulatory qualities to unlock private investment.
Nick Shave, managing director of Astroscale UK, UK, said the findings will help position the UK as a leader in sustainable space operations: “RPO is the basis for all internal services in orbit, from fueling to clearing debris. From the right regulatory framework, the UK can capture a quarter of this transformative global market.”
The proposals were conducted by a consortium including Astroscale, Clearspace and D-Orbit in collaboration with the Civil Aviation Administration and DSIT. The regulatory sandbox process allows companies to test licensing issues in the “safe space” before starting a task.
Ministers believe that there are thousands of satellites and debris already in orbit, so regulations are crucial to protecting long-term access to space. The UK’s 2028 garbage removal mission will be demonstrated as a track technology for how to deploy safely and commercially.
“This stage has been critical in promoting cooperation between governments, regulators, insurers and operators. By proposing clear and proportionate approaches, these proposals position the UK as the global leader in this strategically important area,” said Rory Holmes, UK managing director at ClearSpace.
As the UK hopes to consolidate its role in the global space economy while ensuring regulation and innovation are in sync. The government hopes that these changes will cut costs for businesses, encourage more investment, and increase resilience in the face of geopolitical and environmental challenges.
Professor Jill MacBryde, co-director of interactive networks that support industrial digital innovation, said the approach to joining could also create benefits in a wider range of manufacturing and research: “This work represents an important step towards a more sustainable future in space, while strengthening the UK’s global leadership in industrial innovation.”
As space becomes increasingly important, from climate monitoring to national defense security, ministers say Britain’s economic growth and national resilience are related to ensuring the industry gets the right support.
