UK space sector ‘lacks strategic direction,’ Lords warn

Steven

UK space sector ‘lacks strategic direction,’ Lords warn

Summary

The House of Lords UK Engagement with Space Committee has published a blunt report, “The Space Economy: Act Now or Lose Out,” concluding the 2021 National Space Strategy has not delivered and that “the UK space sector lacks the strategic direction necessary for success.” The sector still contributes about £18.6 billion and employs roughly 55,000 people, but saw an 8.9% contraction between 2021/22 and 2022/23.

The report points to Brexit-related exclusion from EU programmes (notably Copernicus until 2024), fragmented ministerial responsibility for space across multiple departments, and an over-reliance on US commercial providers such as SpaceX (for launch) and Starlink (for satellite broadband). It urges a dedicated Space Minister, a shift from research grants to procurement-driven funding to attract private capital, investigation into sovereign launch capability, and diversification of critical services to reduce strategic dependence on a single foreign supplier.

Key Points

  • The Lords’ report says the 2021 National Space Strategy has failed to turn ambitions into reality; the sector “lacks strategic direction.”
  • UK space contributes ~£18.6bn to the economy and employs ~55,000 people, but contracted 8.9% in 2022/23.
  • Brexit reduced the UK’s formal influence in EU/ESA programmes, complicating access to some projects and markets.
  • Responsibility for space policy is split across ministries (Defence, Business and Trade, Transport, DSIT), prompting a recommendation for a dedicated Space Minister.
  • The committee recommends shifting funding toward procurement-based models to crowd in private investment and build national capabilities.
  • Heavy reliance on SpaceX and Starlink is flagged as a strategic risk; the report urges diversification and research into impacts of losing access.
  • Calls for sober assessment of a sovereign launch capability: valuable for security but economic viability must be proven.

Context and relevance

The report is a timely wake-up call: major economies are accelerating space investment across civil and military programmes, and geopolitical shifts make old dependencies riskier. For UK policymakers, defence planners, investors and the space supply chain, the findings underline that strategic confusion and fragmented governance could blunt commercial and security advantages. A move to procurement-led funding and clearer ministerial oversight would align UK policy with industrial needs and allied expectations.

Author style

Punchy: this is not a gentle nudge — it’s a siren. If the UK wants to stay competitive and secure in the growing space economy it needs quick, co-ordinated decisions, not more committee squabbling. Read the detail if you care about industry direction or national resilience.

Why should I read this?

Short and simple — it’s a stark, high-level diagnosis of where UK space policy is going wrong and why that matters for jobs, defence and investment. If you work in or follow the UK space sector (or are an investor or policymaker), this saves you time: the Lords lay out the problems and practical starting points for fixes.

Source

Source: https://www.theregister.com/2025/11/06/uk_risks_being_adrift_in/