The UK space sector is set for a shake-up after ministers unveiled reforms designed to cut red tape, streamline decision-making, and accelerate growth in one of Britain’s fastest-developing industries.
Under the plans, the UK Space Agency (UKSA) will formally become part of the Department for Science, Innovation and Technology (DSIT) by April 2026. The move is designed to eliminate duplication across Whitehall and ensure that strategy, policy, and delivery are joined up under direct ministerial oversight.
The changes form part of the Government’s wider “Plan for Change”, which aims to simplify the role of public bodies, improve accountability, and remove bureaucratic barriers.
The UK space industry – comprising more than 1,100 companies and contributing £2.3 billion to the economy – is increasingly vital to national infrastructure. Nearly one-fifth of UK GDP depends on satellite services, from navigation to communications.
However, the sector faces challenges, from rising international competition to the growing issue of space debris. Ministers believe the structural changes will help Britain stay at the forefront of new technologies, including in-orbit satellite servicing, repair, and manufacturing – a market estimated to be worth £2.7 billion globally by 2031.
Sir Chris Bryant, (pictured above) 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. This sector supports tens of thousands of skilled jobs and drives innovation across defence, science and technology.
Bringing policy and delivery together under one roof will allow us to act faster, integrate better, and maintain the ambition that has made the UK a global player in space.”
Dr Paul Bate, chief executive of the UK Space Agency, said the merger will make it easier to turn strategy into action: “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. We’ll reduce duplication and work even more closely with ministers to support the UK space sector and the country.”
The UKSA will retain its name and brand but will combine staff and expertise with DSIT. The Government said the transition will be carefully managed to maintain ongoing programmes, including preparations for Britain’s first active space debris removal mission in 2028.
Alongside the structural reforms, more than 60 recommendations have been published to improve the way space missions are regulated.
A report into Rendezvous and Proximity Operations (RPO) – where spacecraft dock, refuel, or repair one another in orbit – highlights the need for regulatory clarity to unlock private investment.
Nick Shave, managing director at Astroscale UK, one of the firms leading the work, said the findings would help position Britain as a leader in sustainable space operations: “RPO is the foundation of all in-orbit servicing, from refuelling to debris removal. With the right regulatory framework, the UK can capture a quarter of this transformative global market.”
The recommendations were developed by a consortium including Astroscale, ClearSpace and D-Orbit, in partnership with the Civil Aviation Authority and DSIT. The Regulatory Sandbox process allowed companies to test licensing issues in a “safe space” before missions launch.
With thousands of defunct satellites and debris already in orbit, ministers see regulation as critical to protecting long-term access to space. The UK’s 2028 debris removal mission will act as a demonstration of how in-orbit technologies can be deployed safely and commercially.
Rory Holmes, UK managing director at ClearSpace, said: “This stage has been pivotal in fostering collaboration between government, regulators, insurers, and operators. By setting out a clear and proportionate approach, these proposals position the UK to be a global leader in this strategically vital area.”
The reforms come as Britain looks to cement its role in the global space economy while ensuring that regulation keeps pace with innovation. The Government hopes the changes will cut costs for businesses, encourage more investment, and strengthen resilience in the face of geopolitical and environmental challenges.
Professor Jill MacBryde, co-director of the InterAct network supporting industrial digital innovation, said the joined-up approach could also create benefits across wider manufacturing and research: “This work represents a crucial step towards a more sustainable future for the space sector, while reinforcing the UK’s global leadership in industrial innovation.”
With space increasingly critical to everything from climate monitoring to defence security, ministers say Britain’s economic growth and national resilience are tied to ensuring the industry has the right support.
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UK space industry boosted by reforms as government merges UK Space Agency with DSIT
