The UK Space Agency is set to invest 1.2 billion pounds in some of Europe’s biggest and most lucrative space projects, providing the UK with increased leadership in a rapidly growing global sector and building on the British space industry’s 9.1 billion pounds contribution to the economy.
The outcome of the negotiations will strengthen the UK role in a number of areas, including telecommunications and Earth observation satellites. It will also secure around 1 billion pounds of orders per year for British businesses and lay the foundations for the UK to deliver its ambition to have a 30 billion pounds space industry by 2030.
Minister for Universities and Science David Willetts said:
“Space is big business for the UK so it is important for us to make strategic investments that will continue the growth of this thriving industry. The program of investment we’ve negotiated at ESA will not only allow us to get ahead in the global race by securing more major contracts for UK industry, but will also provide us with the tools to manage major challenges like disaster relief and climate change.”
The UK’s investment of around 240 million pounds per year over the next five years will be split between ESA’s mandatory programme, which all member states must commit to, and 10 other programs, including a one-off contribution to the International Space Station as part of the negotiations on the Orion Mutli-Purpose Crew Vehicle (MPCV).
The UK’s increased investment in ESA will ensure the UK plays a lead role in frontier scientific research concerning the Solar System, the Sun and the universe beyond. It will also allow us to deliver indisputably world-class science whilst providing growth for the UK economy and benefiting society at large.
The optional programs, including the UK’s contribution to the International Space Station, have been selected to maximize the economic growth to the UK, bring significant business to UK industry through future orders and create a stronger industry able to sell more abroad. It will also enable us to lead on economic services development, aspects of robotic exploration such as space nuclear power and robotics and climate studies using space data.
The UK space sector expects significant returns from the new plan of investment. Industry has already identified projects to the value of 1 billion pounds that should follow from the additional funding.
In addition to the funding for the International Space Station, the UK’s new package of investment with ESA includes:
The Government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011: The budget is available here.

Dr David Williams, Chief Executive of the UK Space Agency, said, “With the majority of the UK’s investment in space being spent through ESA programmes, a robust plan of investment for ESA is pivotal to the UK space industry. Thanks to the Government’s increased funding, we were able to enter the negotiations with the funds to match our vision and will now be able to continue programmes that will reinforce the continuing growth in a sector that now contributes over 9 billion pounds to the UK economy.”


