UK Government folds Space Agency into DSIT

The UK Space Agency is to become part of the UK government’s Department for Science, Innovation and Technology (DSIT) in a move the UK government said will lead to “cutting duplication, reducing bureaucracy, and putting public accountability at the heart of decision-making.”

“Taking place by April 2026, the new unit will keep the UK Space Agency name and brand and will be staffed by experts from both organisations,” said the DSIT.

“This will drive up efficiency in line with the Government’s Plan for Change, cutting red tape and making Whitehall more agile.”

Richard Lochhead, the Scottish Government’s Minister for Business and Employment, wrote on LinkedIn: “Well this is a bolt out of the blue.

“First I’ve heard of this — the Scottish Government hasn’t been consulted or informed by UK Ministers.

“And Scotland accounts for a substantial part of the UK’s space sector and ambitions. We regularly engage with the UKSA as do so many of our businesses and organisations.

“I’ll be seeking urgent clarification from the U.K. Government as to what this all means and seeking assurances.”

The DSIT added: “Today also sees the publication of over 60 recommendations from industry leaders on how to improve regulation for space missions, including Rendezvous and Proximity Operations (RPO) – where spacecraft work together in orbit.

“These missions are key to unlocking a future market worth £2.7 billion by 2031, and the UK is well placed to lead the way. It is a prime example of the joined-up working that will benefit from the merge of UKSA into DSIT.

“With the right support, UK space firms could capture a quarter of the global market for in-orbit servicing, assembly and manufacturing. This will help to clean up space, extend the life of satellites, and build new infrastructure above Earth.

“Every Arm’s Length Body across Government is being reviewed with a view to rooting out unnecessary bureaucracy and duplication, and to put public accountability first. Ministers have already announced that NHS England, the largest quango in the world, will be abolished as part of this process.”

UK Government Space Minister 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 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.”