UKSA developments: The UK space sector is set for lift off

The UK government has announced new reforms in its space sector governance to cut bureaucracy and unlock growth opportunities in a fast-evolving global industry

The UK Space Agency (UKSA) will become part of the Department for Science, Innovation and Technology (DSIT) by April 2026, in a move designed to fast-track operations and support innovation across the country’s growing space economy.

This merger is an important part of the government’s Plan for Change, which focuses on making Whitehall more agile and reducing duplication across departments. The shift is expected to bring space policy and delivery under one roof, ensuring more efficient decision-making with clear ministerial oversight.

Space Minister Sir 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.”

Boosting innovation

The integration of UKSA into DSIT is expected to deliver faster, more coordinated support to UK space companies and researchers. It will help eliminate overlapping functions, improve accountability, and ensure that resources are focused on delivering results.

UKSA will maintain its name and brand, but will now operate more closely with policymakers, combining strategic direction with technical delivery under a unified structure.

This is part of the government’s effort to review and reform all arms-length bodies, aiming to eliminate unnecessary bureaucracy and enhance public accountability. The ultimate goal is to create a regulatory environment that supports the rapid development and deployment of cutting-edge technologies, including those critical to the future of space.

Driving growth through smarter regulation

Alongside the agency’s realignment, over 60 industry-led recommendations have been published to help modernise regulation for space activities.

A key focus is on allowing Rendezvous and Proximity Operations (RPO) a foundational capability for in-orbit satellite repair, refuelling, and debris removal.

The UK is aiming to capture a quarter of the global market for in-orbit servicing, assembly, and manufacturing, a sector expected to be worth £2.7 billion by 2031. Smarter, more flexible regulation will be vital to unlocking these opportunities.

The recommendations come from a collaboration between leading space firms, Astroscale, ClearSpace, and D-Orbit as well as the Civil Aviation Authority, DSIT, and UKSA. Their work has been compiled in the Stage 1 Report of the Regulatory Sandbox for RPO, which provides a structured approach to testing and refining regulatory frameworks in a safe and collaborative environment.

The future of sustainable space

The RPO Regulatory Sandbox is already helping to remove roadblocks for UK firms and investors, offering better confidence to those working in emerging areas such as active debris removal and satellite life extension. These capabilities will be critical for ensuring long-term sustainability in Earth’s increasingly crowded orbits.

Stage 2 of the sandbox is now underway, focusing on practical implementation of the recommendations and refining the regulatory framework. This initiative supports the UK’s first planned active debris removal mission, expected to launch by 2028, which will demonstrate the technologies needed to safely remove defunct satellites.

While the merger will not impact existing UKSA grants or contracts in the short term, the structural changes are designed to foster a more efficient, innovative, and globally competitive UK space industry. With public and private sectors working more closely together, the UK aims to strengthen its leadership in space sustainability and capitalise on fast-growing commercial opportunities in orbit.