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World of Software > News > UK space sector to benefit from ESA’s £1.7bn funding boost – UKTN
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UK space sector to benefit from ESA’s £1.7bn funding boost – UKTN

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Last updated: 2025/11/27 at 11:26 AM
News Room Published 27 November 2025
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UK space sector to benefit from ESA’s £1.7bn funding boost – UKTN
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A new £1.7bn investment package has been confirmed for European Space Agency (ESA) programmes that will go towards contracts for UK industry and universities.

Agreed at the ESA Council of Ministers in Bremen, Germany, the new funding brings the UK’s current level of support for ESA programmes to £2.8bn over the next decade.

The UK Space Agency has become a core element of the government’s industrial strategy and economic growth goals, having absorbed it into the Department for Science, Innovation and Technology in August with a mandate to seek competitive private contracts.


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There is strong belief from the government that the space tech sector will be a major source of revenue, with current estimates claiming that for every £1 invested in the ESA alone, £7.49 is returned in direct benefits to the UK economy.

“Our space sector is a key driver of our economic growth and national security, and also supports our allies in Europe and beyond,” said Space Minister Liz Lloyd.

“After these negotiations in Bremen, during what remains a challenging time for economies across Europe, we have secured backing for our priority ESA programmes, which will support thousands of jobs, greater resilience and cutting-edge science and technology across the UK.”

Dr Paul Bate, chief executive of the UK Space Agency added: “With a sharper focus and more coordinated approach to space across government, we entered these important negotiations with clear priorities, and delivered against them.

“But what’s even more important is how we worked as a team – government, industry, academia – to deliver the capabilities in space that our country needs.”

Read more: UK must take space economy seriously, Lords say

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