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 the UK space sector “lacks the strategic direction necessary for success”. The sector contributes around £18.6 billion to the economy and employs roughly 55,000 people, but recent figures show an 8.9% contraction between 2021/22 and 2022/23.

The report highlights several core problems: post-Brexit exclusion from some European programmes and more complex access to EU markets; fragmented ministerial responsibilities across Defence, Business and Trade, Transport and others; over-reliance on US commercial services such as SpaceX and Starlink; and an unproven business case for a domestic orbital launcher and spaceports. The committee urges a dedicated Space Minister, a shift from grant-based to procurement-led funding to attract private investment, and investment in sovereign capabilities including launch.

Key Points

  • The Lords’ report says the 2021 National Space Strategy has failed to turn ambitions into reality and the sector “lacks strategic direction.”
  • The UK space sector is worth £18.6bn and employs ~55,000, but contracted 8.9% in the latest year reported.
  • Brexit has reduced the UK’s influence in European space programmes and made market access more complex.
  • Responsibility for space policy is dispersed across several departments; the report recommends a dedicated Space Minister to coordinate strategy.
  • The committee recommends shifting funding from research grants to procurement-led spend to crowd in private investment and strengthen national capability.
  • Heavy dependence on US commercial providers (notably SpaceX/Starlink) poses resilience and geopolitical risks; the report urges diversification and research into impacts of potential loss of access.
  • The economic case for a UK orbital launcher and spaceports remains unproven, but the report highlights the strategic security benefits of sovereign launch capacity.
  • Experts warn other nations are investing heavily in space; without a forward-looking strategy the UK risks being left behind.

Why should I read this?

Short version: this is a proper wake-up call. If you care about UK industry, jobs, defence or national resilience, the Lords say the government needs to sort out who runs space policy, stop faffing with fragmented responsibilities, and back real capabilities — not just research papers. We’ve skimmed the report and pulled the bits that matter so you don’t have to read the whole thing right now, but the full document is worth a look if you work in the sector or follow national strategy.

Source

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