UK Government Launches £7.8bn Space Strategy Through 2030 for Defence and Growth

Air September 8, 2026

The UK government has published a new space strategy backed by £7.8 billion in funding through 2030, integrating defence, security and economic growth objectives across four priority areas: satellite communications, in-orbit servicing and manufacturing, space domain awareness, and assured access to space.

£7.8bn strategy unifies UK space investment across defence and growth

The strategy, published on 8 September 2026, brings together government space investment and activity under a single framework to advance national security, defence capabilities, and economic reindustrialisation. It replaces the National Space Strategy published in 2021 and forms part of the government’s Modern Industrial Strategy.

The sector currently generates £18.6 billion in economic value and supports more than 55,000 skilled jobs. The strategy is intended to strengthen the UK’s position as a global space leader across satellite services, space exploration, and the development of cutting-edge technologies.

Defence and security priorities

Space Domain Awareness represents a key focus. The government will invest £149 million in the European Space Agency’s Vigil mission and £85 million in the National Space Operations Centre to improve detection of satellite collisions, hostile activity, and solar storms affecting power, communications, and navigation systems.

Defence capabilities receive £880 million to develop space control and intelligence, surveillance and reconnaissance technologies. A further £2.8 billion will support connectivity through the Connectivity in Low Earth Orbit and SKYNAT defence communications programmes, ensuring Armed Forces maintain operational connectivity globally.

Defence Secretary Wes Streeting said: “This space strategy recognises that our national security depends on our freedom of action in space and, if necessary, the ability to protect UK and allied space assets. As threats in orbit grow more sophisticated, so must our ability to detect and respond to them, ensuring we protect the interests of the UK and allies while fuelling economic growth along the way. Backed by the Defence Investment Plan, we’re investing more than £3 billion to ensure our defence capabilities in space keep pace with the threats we face, supporting reindustrialisation and creating opportunities here in the UK.”

Commercial and civilian applications

The strategy allocates £40 million for in-orbit servicing, assembly and manufacturing (ISAM) technologies to repair and maintain satellites damaged by debris, solar storms or interference, whilst supporting orbital debris removal. Such capabilities enable development of new products in the space environment, including semiconductors and pharmaceuticals.

Rail connectivity improvements receive £57 million from the Department for Transport, targeting faster and more reliable connections to rural communities and reduced mobile signal dropouts on trains through advanced satellite communications.

Space science and exploration missions receive £163 million, including delivery of the Rosalind Franklin Mars Rover built in Stevenage. The UK Research and Innovation (UKRI) will receive £190 million for astronomy and space science research, and the Met Office £9 million for space weather forecasting.

Launch capability is supported by £148 million for European rocket programmes and £30 million for the SaxaVord Spaceport in Shetland, reducing reliance on foreign launch providers.

Regulatory reform and procurement changes

The government has announced regulatory reforms designed to reduce costs for UK operators and encourage responsible space activity. A world-first variable liability limits approach will incentivise adoption of government priorities in security and sustainability. Operator liability has been waived for innovative missions launched before the end of 2030, including ISAM and lunar missions. New third-party liability insurance models will support innovation in the City of London space insurance market, and decommissioning fund requirements for constellation operators have been abolished in favour of financial health monitoring.

For the first time, government will adopt a single procurement approach to buying and developing space technology, beginning with satellite communications, to strengthen UK supply chains and improve value for money.

Industry response

Doug Liddle, Chair of UKspace, said: “UKspace welcomes the publication of the government’s new UK Space Strategy. It sets out a constructive path towards a refreshed approach to space in the UK, which we hope will result in a stronger emphasis on open, inclusive cross-sector dialogue. The new, focussed strategy offers a valuable opportunity to create a more streamlined framework, strengthen collaboration and deliver greater impact across the UK space sector.”

Kevin Craven, Chief Executive Officer of the ADS Group, said: “We welcome the publication of the new space strategy, and the sustained effort to bring a cross-government perspective to space capability delivery. It is important that government maintains an open, transparent and ambitious partnership with industry to realise its national security and growth goals. Certainty allows the sector to operate at pace and for its industrial base to make long-term strategic and commercial commitments. It is also a vital signal of intent to our international partners for trade and collaboration. ADS looks forward to supporting government on the crucial next steps for implementation.”

Simon Brown, Managing Director of the Met Office, said: “Space based observations are critical for delivering weather forecasts and climate intelligence that people rely on every day to stay safe and grow the economy of the UK. Advancements in space observations are allowing us to improve our weather forecasts and also give us new imagery which helps us show the impacts of other hazards such as wildfires and drought which we have seen this summer. Delivering new and innovative space capability is important to enhance our preparedness for extreme weather and exploit the latest advances in our prediction capability using both physics and AI models. We welcome the new UK Space Strategy and its recognition of the vital role space plays in supporting weather and climate services, as well as the Met Office’s role as the UK’s space weather forecasting centre.”

For the UK Defence Supply Chain

This strategy signals sustained government demand across four defined subsectors: satellite communications, in-orbit servicing/assembly/manufacturing, space domain awareness, and assured access to space. Suppliers should expect opportunities in satellite platform development and operations, ground station infrastructure, ISAM technologies including robotic systems and refuelling capabilities, sensor and monitoring systems for domain awareness, and launch vehicle integration. To compete for this work, organisations will need to demonstrate security clearance eligibility or active clearance status, space sector accreditation (such as NADCAP or equivalent), proven track records on MOD or defence-adjacent programmes, and supply chain resilience. The strategy’s £3 billion defence investment—separate from the broader £7.8 billion—reflects MOD’s drive to establish sovereign space capability, reduce reliance on allied launch providers, and establish responsive domestic industrial capacity aligned with NATO interoperability standards and UK strategic autonomy in space operations.

Image Source: Ministry of Defence – Activity on GOV.UK