The UK space agency is expected to undergo major transformation as it will become part of the Department of Science, Innovation and Technology (DSIT) by April 2026.
The move is designed to reduce duplication, reduce bureaucracy, and enhance ministerial surveillance, ensuring public accountability is at the heart of the UK’s growth space programme.
The new arrangement combines the expertise of both organizations while maintaining the name and brand of the UK space agency.
This integration brings policymakers and delivery teams under one roof, implementing strategies to accelerate progress in the UK space sector.
British Space Minister Chris Bryant emphasized the importance of this move.
“This is a sector that draws investment in the UK and supports tens of thousands of skilled jobs across the country, with nearly a fifth of GDP relying on satellites.
“The growth and security objectives at the heart of change planning cannot be met without the vibrant space sector.
“Bringing things in-house means that we can bring a lot more integration and focus to everything we do while maintaining our scientific expertise and the immense sector ambitions.”
Industry recommendations show a £2.7 billion market
The announcement coincides with the release of more than 60 recommendations from industry leaders on how to improve regulations on advanced space missions.
These include Rendezvous and Proximity Operations (RPOs), where spacecraft work together in orbit. This is projected to unlock the global market of £2.7 billion by 2031.
With a proper regulatory framework, UK companies can secure up to a quarter of this market, ensuring pioneering technologies such as on-track service, assembly and manufacturing.
Such advancements will extend satellite lifespans, reduce orbital debris, and lay the foundation for new space infrastructure.
Tackling bureaucracy across the government
Integrating the UK space agency into DSIT forms part of a wider government initiative to review and reform the body of weapons length.
The minister has already confirmed that the world’s largest Quango, NHS England, will be repealed under the same drive to eliminate duplication and enhance accountability.
Founded in 2010, the UK Space Agency currently operates as the executive body of DSIT. In 2024/25 alone, it helped catalyze at least £2.2 billion in space sector investments and revenues.
Authorities have confirmed that both organizations will continue to collaborate closely during the transition period to ensure industry stability.
Dr. Paul Bate, CEO of the UK Space Agency, added: “We strongly welcome this improved approach to achieving government space ambitions. Having a single unit with golden threads through strategy, policy and delivery will allow us to translate the country’s space goals into reality.
“When we gather, our UK Space Agency and Space Policy colleagues are based on a solid foundation of economic growth and capacity development that has existed in recent years, including cutting-edge missions, key national programs, and regulations that enable the UK to launch and leadership in space sustainability.”
“We continue to assure you that we will reduce duplication and work even closer to our Ministers in supporting the UK space sector and the country.”
Sandbox Testing: paving the way for innovation
A key element of this new strategy is regulatory innovation. The stage 1 report from the UK Regulation Sandbox for the RPO mission is led by Astroscale, Clearspace and D-Orbit and is published in collaboration with the Civil Aviation Authority, the UK Space Agency and DSIT.
The sandbox approach creates a controlled environment where regulators can safely test new technologies while improving rules in real time. This process helps identify bottlenecks, reduce investor uncertainty, and ensure regulations evolve along with innovation.
The findings in the report will directly support the UK’s first active debris removal mission, scheduled to begin in 2028. This groundbreaking project demonstrates the technology needed to capture and remove decommissioned satellites, an essential step in ensuring sustainable access to orbit.
Global opportunities for the UK space industry
Experts believe the UK space sector is uniquely positioned to lead billing for new orbital services, including satellite fueling, repairs and debris clearance.
The government aims to build a competitive advantage for UK companies in a global market that is expected to expand rapidly decades ago by shaping future-looking regulations and reducing unnecessary bureaucracy.
Therefore, the merger of the UK space agency with DSIT is more than structural change, representing its commitment to leveraging innovation, investment and international leadership in space.
As one of the UK’s fastest growing industries, the space sector is poised to bring not only economic growth but technologies essential to future security and sustainability.
Source link
