The United Kingdom’s government has announced that the UK Space Agency (UKSA), the body responsible for steering the nation’s ambitions in orbit, will cease to exist as an independent entity by April 2026. Instead, it will be absorbed into the Department for Science, Innovation and Technology (DSIT), a move officials say is designed to cut bureaucracy, reduce duplication, and place space policy under direct ministerial oversight. The change is part of a broader government push to streamline public bodies and deliver cost savings, following Prime Minister Keir Starmer’s earlier pledge to reduce the number of quasi-autonomous non-governmental organizations (quangos), beginning with the abolition of NHS England in March 2025, according to BBC and New Civil Engineer.
The restructuring, which will see the UK Space Agency become a unit within DSIT but retain its name and brand, has sparked a lively debate across the scientific community, industry, and labor unions. On one side, government officials and industry leaders argue that the merger will bring greater integration and focus to the UK’s space program, while maintaining the expertise and ambition that have driven the sector’s growth. On the other, critics fear the move could undermine the UKSA’s dynamic and proactive approach, risking disruption and a loss of specialist knowledge just as international competition in space intensifies.
Established in 2010 in response to the growing importance of the space sector to the UK economy, the UK Space Agency has played a pivotal role in advancing small spacecraft, satellites, and space instrumentation. It has also been instrumental in developing the nation’s capability to launch small satellites and payloads from Scotland, supporting high-profile missions such as UK astronaut Tim Peake’s journey to the International Space Station. The space sector currently generates an estimated £18.6 billion a year and employs 55,000 people across the country, according to BBC.
Under the new arrangement, the agency’s budget and activities will be absorbed into DSIT, with a new unit staffed by experts from both organizations. DSIT has allocated £668 million to the UK Space Agency for the 2025/26 fiscal year, with future funding allocations to March 2030 to be announced in due course, New Civil Engineer reports. Importantly, officials emphasize that there will be no immediate changes to UK Space Agency grants or contracts, and businesses and researchers currently working with the agency do not need to take any action.
Space Minister Sir Chris Bryant, explaining the rationale behind the move, stated, “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.” He underscored the sector’s significance, noting, “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 government insists that the UK Space Agency is not being abolished, but rather merged with DSIT’s Space Directorate to form a single unit responsible for civil space policy and delivery. The UKSA name and brand will live on, and the merger aims to “cut any duplication that exists and ensure decisions are made with clear ministerial oversight,” according to a DSIT statement cited by New Civil Engineer. The ambition for the UK to become a launching nation remains unchanged, with the first launches from SaxaVord Spaceport in Scotland expected in 2026.
Industry leaders have largely welcomed the merger, seeing it as a chance to streamline the government’s approach and boost support for the burgeoning UK space sector. Paul Bate, CEO of the UK Space Agency, 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.” He added, “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.”
Kevin Craven, CEO of ADS, a trade association representing over 1,500 UK aerospace, defence, security, and space businesses, echoed this optimism: “We welcome today’s announcement and thank the Department for Science, Innovation and Technology as well as the UK Space Agency for their ongoing candid and constructive dialogue with industry on delivering high-quality outcomes for the UK space sector.” Craven described the restructure as “vital” for ensuring proper governance to support a sector that already delivers over £7.2 billion to the UK economy and supports more than 50,000 jobs nationwide.
Phil Chambers, CEO of Orbex, a company hoping to launch rockets from SaxaVord, said, “We welcome any effort made to consolidate the UK’s significant resources to drive economic growth in the space sector. We look forward to continuing to work with colleagues in DSIT and the UK Space Agency as we strive to build the UK’s sovereign launch capability.”
Scott Hammond, chief executive of SaxaVord Spaceport, described the government’s move as “very welcome,” adding, “A streamlined approach to this new and rapidly growing sector by government, with a clear focus and joined-up delivery, is vital to ensure that everyone operating in it can make most of the opportunities opening up. Less red tape and more agility in Whitehall should make government more responsive to our needs and support the economic growth and security that the space industry brings.”
However, concerns remain among scientists and union representatives. Dr. Simeon Barber of the Open University warned that the move could lead to short-term disruption and cause the UK to lose ground to international competitors in the long run. “Around the world countries have been recognising the importance of space by setting up National Space Agencies, and for the government to be scrapping ours seems like a backward step,” he told BBC. Barber added, “It feels like we’re going to get stuck in the mud again.”
Mike Clancy, general secretary of the Prospect union, which represents UKSA workers, said, “There is a real risk that abolishing the Agency sends the wrong signals about the Government’s ambition for the sector, and leads to a loss of specialist knowledge and skills. It is important that the Government is clear about the rationale for this move, and how they plan to ensure that the space sector does not lose out as a result. We must not be left in a situation where Britain’s most productive sectors are being hamstrung in order to save tiny amounts of money.”
There are also practical challenges ahead. The UK Space Agency’s planned spending on launch-related activities for 2025 stands at £38 million, a 66% drop from the £112 million initially committed in its 2022 corporate plan. Meanwhile, construction at Sutherland Spaceport, where a floating road was installed in May 2024 to protect sensitive peat environments, has been indefinitely suspended.
As the UK prepares for its first home-grown satellite launches and seeks to maintain its place in the global space race, the merger of UKSA into DSIT marks a pivotal moment. Supporters see an opportunity for greater efficiency and focus, while critics worry about the risks of losing momentum and expertise. With the space sector’s economic and strategic importance only growing, all eyes will be on how this new structure delivers on its promise—and whether Britain can keep its ambitions firmly in orbit.
