The UK government has announced that the UK Space Agency (UKSA) will be absorbed into the Department for Science, Innovation and Technology (DSIT) as of April 2026. The government said that it would cut costs, any duplication that exists, and ensure decisions are made with ministerial oversight.
It is part of Prime Minister Keir Starmer’s desire to cut red tape, reflected by the announcement of the abolition of NHS England in March 2025.
Rather than existing as an independent agency, the new unit will function in DSIT and be staffed by experts from both UKSA and DSIT.
Sir Chris Bryant, Space Minister, said 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,” acknowledging the money that the UK space industry brings in: current figures dating to 2021-2022 place the value of space and satellite services at £454 billion to the economy, or 18% of the UK’s GDP, showing an increase of £80 billion on the previous year. It also supports approximately 55,000 jobs across the UK.
However, experts have spoken of their alarm of the impact of such a move. In reporting by the BBC, Dr Simeon Barber from the Open University said: “Around the world countries have been recognising the importance of space by setting up national space agencies, and for the government to be scrapping ours seems like a backward step.”
Magdrive, a British startup that creates thruster technology for spacecraft propulsion, have voiced their concerns, explaining that the UKSA played a key role in stoking confidence among companies that the UK space sector was worth investing in, and this latest move risks the UK losing its competitive position.
“This is not simply about prestige. Space is a critical infrastructure pillar, it underpins communications, navigation, climate science, defence, and trade. If support for the sector dilutes, the UK will lose ground to international competitors who are doubling down with dedicated agencies,” said a company statement. “Companies like Magdrive will increasingly be forced to seek opportunities abroad, meaning the UK misses out on the jobs, innovation, and economic growth that should stay here.
“The message this sends is stark: at a time when other nations are elevating space, the UK is downgrading it. We urge the government to ensure this move does not sideline a sector worth £18.6 billion a year, and to make clear that space will continue to receive the priority, funding, and strategic clarity it urgently requires.”
UKSA was founded in 2010 and prior to this announcement operated as an executive agency of DSIT. The government said that there would be no immediate changes to grants or contracts.
This news follows UKSA’s awarding of £4.5 million to four projects which included MDA Space UK’s SkyPhi mission to deliver 5G and 6G connectivity capabilities, and Viasat’s hybrid GEO-LEO network designed to provide global, 5G direct-to-device coverage.
