UK Space, Supplementary Written Evidence (SPA00106)

Background

UKspace is the official, industry-lead, trade association of the UK’s space sector and has been in operation for over 30 years. It is the only association dedicated solely to furthering our space industry, delivering economic growth, national security and benefits to citizens in the UK and across the globe.

Since July 2024 there has been a significant amount of policy work of relevance to the space sector across many government departments. UKspace’s responses to all relevant consultations have included a number of common themes, including the need to better coordinate policy, strategy and delivery across the whole of government, the need for deeper and more strategic engagement between government (Ministers & officials) and industry and the benefits of a longer-term approach to space, noting the time taken to develop operational space missions. Such an approach would encourage industrial investment.

The Government has announced that the UK Space Agency (UKSA) and DSIT Space Directorate (SD) will be merged by April 2026, with a rationale of cutting duplication, reducing bureaucracy, and putting public accountability at the heart of decision-making – ensuring decisions are made with clear ministerial oversight. The new unit will bring DSIT’s core space policy and delivery functions back into one unit, maintain the UK Space Agency name and brand and be staffed by experts from both organisations.

Merger impacts, opportunities and drawbacks

The sector has long-recognised the challenges inherent in the current fragmented government landscape – and this view has also been reflected in the House of Commons Scottish Affairs Committee’s recently published on launch[1]. This merger is first-step to make the changes needed to set the UK space sector on a new course, working in true partnership across government and with industry.

In delivering the merged organisation it will be essential to consider, retain and develop the essential features of a space agency – even if these features would not usually sit within a central government department.  Examples include deep technical knowledge (with associated career paths), acting as sector champion and convenor within government, nationally and internationally, and delivering a holistic programme that works in concert to drive the development of world class knowledge and sector growth.

A simple merger between the SD and UKSA would:

rebuild the direct “golden thread” from government strategy to delivery of space programmes – but with strengthened Ministerial oversight and accountability due to all former SD and UKSA activities happening within a central Whitehall department. 

Provide the UK space sector with clarity over roles and responsibilities within DSIT’s direct space remit, cutting duplication, reducing red tape and providing increased accountability by bringing teams with overlapping responsibilities together.

Provide a clearer and more comprehensive engagement structure with industry of all sizes.

However, we believe further benefits could be achieved within DSIT by:

strengthening oversight and coordination of all of the bodies involved in delivering the National Space Strategy (including the Research Councils, Innovate UK and organisations such as ARIA) and identifying and forging clear reporting lines between space and other relevant DSIT policy areas, enabling the new UK Space Agency to have comprehensive oversight of all of the levers available to deliver the NSS. 

This change is happening within a wider context, with new Ministers getting to grips with their portfolios, the challenges of delivering value for money during a one-year spending settlement alongside policy work to develop delivery plans and business cases for the forthcoming spending period. 

Whilst the merger is an important exercise, it is also essential to recognise and mitigate the impacts of adding this significant change programme to existing workloads. Whilst delivering the new Agency at pace must be a priority, we also recommend that enough time is taken to maximise the benefits of the merger and minimise impacts on current delivery – even if this means the 1st April 2026 deadline may be missed.

Ability to enable stronger cross-governmental working on strategic priorities

As previously noted, we see this merger as a first step in delivering a “One-Government” approach to space.  

Delivering upon this ambition requires: comprehensive coordination of space interests across the whole of government, capturing defence, economic and security interests, identifying priority needs, and translating them into funded strategic national capability delivery plans, to ensure we remain safe and prosperous nationally, and a meaningful partner internationally, actively pursuing new opportunities to fully utilise our space capabilities across all levels of government, by aggregating demand and the Government’s combined purchasing power, to deliver efficiencies and improve services, ensuring the best value for money from current space investments across all departments, building the foundations for the multi-year spending period and beyond, establishing a longer-term approach to space, based upon a recognition of the timescales involved in delivering space missions (which are akin to other major infrastructure projects), thereby providing industry with the confidence to invest, and

strengthening the relationship between government and the wider sector, drawing upon the best of our nation’s talents in industry and academia to deliver our shared ambitions, and through this, building confidence which will encourage industry to invest.

Steps required to ensure changes are effective

To ensure an effective outcome, we believe the new UKSA must:

have a clear vision and purpose that addresses the UK’s ambitions in space – and the leadership needed to deliver those ambitions. We recommend that the new organisation’s updated vision and mission statements are published as soon as possible – and no later than end of December 2025.

design out duplication and friction, and proactively seek synergies across the government policy landscape, increasing accountability, reducing fragmentation and securing the long-term approach that space requires as a critical part of our infrastructure.

We recommend that by April 2026 the new Agency publishes:

its RACI, providing the sector with clarity of responsibilities and accountabilities within the new Agency and across Government. 

its organisation chart (to G6 / “Heads of” level) - enabling industry to rapidly engage with the new UKSA.

have the credibility and mechanisms to aggregate demand and opportunity across multiple departments, becoming the primary space delivery unit and procurer of space capabilities, data and services.

We recommend:

the Agency’s technical capabilities (in particular the Office of the Chief Engineer and Chief Scientist) are significantly strengthened

Learnings from the National Armaments Directorate report are incorporated into procurement and delivery to ensure the new UKSA has the agility it needs.

be an organisation that both builds on the best talents of its constituent parts and meets many of the unmet ambitions that were set out when it was established in 2010. 

We recommend that as soon as possible (and before December 2025), a closed lessons learnt session is held with select industry and academia representatives, to review the recommendations from the Case4Space and Space Innovation & Growth Strategies (IGS1&2) and bring any still relevant recommendations into the heart of thinking during the merger process.

We believe that people must be at the heart of this merger – there are excellent and widely respected officials in DSIT and UKSA who must be properly supported to mitigate the potential for good staff to leave.   To retain staff confidence and ensure successful delivery of the new Agency, establishing the vision, purpose and leadership of the new Agency should be the highest priority – thereby ensuring the leadership can shape their new organisation.

In order to realise the UK’s potential in space, we need absolute alignment, clarity and coordination on roles and remits both within DSIT and its delivery arms, and across all government departments and their delivery arms, ensuring a “One Government” approach.

An early judgement is needed on whether this substantial change, encapsulated by the features outlined in paragraph 9, can be entirely achieved through the UKSA / SD merger – and if this is not possible, what further changes within Government are needed to deliver this outcome.

In this instance we recommend consideration be given to establishing a small policy unit within Cabinet Office, and / or identifying a senior (Director General-level) champion for space, tasked with ensuring coherency and championing new opportunities to maximise the benefits that the UK’s endeavours in space can deliver.

Successful delivery of our space ambitions also requires government and the sector to be better aligned.  UKspace urges the government to establish stronger and more strategic engagement between government (Ministers & officials) and the wider sector - creating a “National Space Enterprise” focused on our growth, and security and benefits to citizens.

12 September 2025