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Forrester’s Digest: UK Space Agency absorbed by British government

August 21, 2025

The move by the UK government to shift the UK Space Agency into its Department for Science, Innovation & Technology (DSIT) has been described as both good news, and bad, for the UK space sector.

The UK Space Agency (UKSA) is an independent government-backed entity, and the core news is that it is being scrapped by April next year and incorporated into DSIT to enable “faster decision-making” and to enable the Agency to keep pace with the growing importance of space to the UK economy.

However, the opinion of some observers suggests the move does not have universal favour. For example, Martin Bransby (Head of Navigation at Telespazio UK and Chair of the techUK/UKspace Positioning, Navigation and Timing) says, “Despite this, some members [of TechUK] have expressed concerns regarding the potential dilution of UKSA’s technical expertise, in addition to its future ability to act with agility, keep pace with fast-moving technical developments, and respond effectively to international opportunities. Similarly, the move could create barriers to accessing institutional support by slowing down procurement processes. At the same time, budgets will be more exposed to political cycles Against this backdrop, government may wish to consider empowering other entities to take the lead on coordinating the UK’s focus and spending on space-related initiatives.”

“Furthermore, this move may risk the international position of the UK space sector, unless it is followed by programs that reduce barriers for businesses seeking to access international opportunities to launch new products and services through initiatives such as Horizon Europe. This could be mitigated through greater UK participation in international investment program focused on innovation,” added Bransby.

The government’s Minister Sir Chris Bryant said, “You don’t need to be a rocket scientist to see the importance of space to the British economy. This is a sector that pulls investment into the UK, and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites. The aims for growth and security at the heart of our Plan for Change can’t be met without a vibrant space sector. Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector.”

UK Space Agency CEO Dr Paul Bate said, “I strongly welcome this improved approach to achieving the government’s space ambitions. Having 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. In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability. We will continue to deliver, while reducing duplication and ensuring we work even more closely with Ministers to support the UK space sector, and the country.”

Filed Under: International Space Agreements, Market Forecasts

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