UK Government promises clarity over Scotland’s space sector

The UK Government has pledged to set out a strategic approach to supporting the Scottish space sector in 2026.   

The commitment comes after a report by the Scottish Affairs Committee warned that Scotland was at risk of losing a “generational opportunity” to become the European leader in space launch without proper investment. 

Responding to the report, the UK government agreed that long-term, strategic investment commitment is essential to the success of the UK’s space sector. To achieve this, the UK Government has said it plans to publish a new cross-government space publication in 2026, which would set out its strategic approach and priorities over the spending review period. 

Liz Lloyd, the minister for digital economy, said: “The Government recognises the scale of the opportunity for Scottish launch. Scotland’s unique geography, innovative launch startups, combined with a strong satellite manufacturing heritage gives us the opportunity to develop a highly attractive end-to-end offer for customers to design, build, launch and operate satellites all from Scottish soil.” 

In Scotland, the space industry is predicted to be worth over £4bn by 2030 and employ over 20,000 people. Figures show that one fifth of all UK space sector jobs are in Scotland and that Glasgow produces more small satellites than anywhere else in Europe. 

Patricia Ferguson, chair of the Scottish Affairs Committee, said: “With five out of the UK’s seven developing spaceports located in Scotland, we have real potential to become world leader in satellite space launch. However, it was clear to the committee that unless the UK Government moves further and faster to support the sector, Scotland will lose out on this generational opportunity. 

“I welcome the government’s commitment to set out its strategic priorities and costed plans for the sector in 2026. The committee will examine this publication, to see whether it can provide Scotland’s space launch industry with the confidence and clarity it needs to scale up and realise the UK’s potential as a serious contender on the global launch stage.” 

In its response to the report, the UK Government did temper expectations for large-scale investment by highlighting that space launch was a high-risk industry, meaning the government “takes on a risk when investing” in the sector. It clarified that this meant it would not be able to “guarantee success in building Scottish launch at any cost”.   

Scotland is also home to the SaxaVord Spaceport in Unst on Shetland. SaxaVord is one of seven spaceports in the UK but the only one to have launches scheduled. All these spaceports are privately owned, meaning that private companies from around the world can bid to lock down these three launch pads for their exclusive use.   

In November, a report published by a House of Lords cross-party committee looked at the UK-wide impact of the space industry. It recommended that the government provide a clear strategic direction and framework for space development while also appointing a dedicated space minister and space champion to drive cross-government co-ordination and industry engagement.   

The report also highlighted the importance of space technology to the UK, with some estimates saying that over £450bn of the UK’s economy is dependent on the space sector.   

Committee chair Baroness Catherine Ashton said: “Only the most strategic and forward-looking nations will capture the economic and scientific rewards of this new space age. With the right leadership, co-ordination, and investment, the UK can be there. Space is transforming the world, and our report found much to be positive about. Britain should play a role in leading that transformation or risk being left behind.”