UKSA decision proves government is serious about space economy

The decision from the government to have the Tech Department absorb the UK Space Agency (UKSA) signals a genuine effort at establishing a thriving space economy, according to figures from the industry.

On Wednesday it was announced that the UKSA would cease to operate independently and will instead be folded into the Department for Science, Innovation and Technology (DSIT) in April 2026.

Much of the announcement from the government was focused on efforts to reduce red tape and the duplication of relevant work – with the UKSA already and executive agency of DSIT.

However, figures from the space industry have celebrated the move as a sign that the government is taking seriously its claimed intention to position the sector as a major economic driver.

Mark Boggett, chief executive of London-listed space tech investor Seraphim Space, said the “recognition of the space sector” demonstrated by the move “underscores its strategic importance”.

“Bringing space in-house aligns the sector with senior government priorities, broadens the scope of the Industrial Strategy,” he said.

Boggett applauded the decision as it will create “coherence across the multiple departments being transformed by innovation in the space sector”.

For Rafel Jorda Siquier, chief executive of British satellite manufacturer Open Cosmos, bringing the UKSA fully into a prominent government department proves that “space is no longer niche”.

“[Space] is the backbone of everything from food security and climate to navigation and defence,” he said.

By making decisions to give the sector “mainstream visibility and attention”, Siquier believes the UK has a good shot at achieving its ambitions.

“The UK has the talent, tech and track record to be a true tour de force in space and innovation, on a global scale, and as long as this transition empowers, and doesn’t dilute, we celebrate it.”

Rachael O’Grady, a partner at law firm Mayer Brown who has served as counsel in the space industry noted that while some media coverage has focused on the cost saving efforts of the move, there is clear messaging about an intention to increase “efficiency” and “strategic alignment”.

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