3 December 2014 – UKspace – the Space Trade Association – today welcomes the Chancellor’s commitment to invest key space programmes which will maintain UK leadership in key industrial capabilities. These and related investments recently agreed by the Chancellor form the mainstay of the UK contribution to the European Space Agency (ESA) budget agreed at the  2014 Ministerial meeting yesterday.

The investment, announced in the Autumn Statement, recognises the industry’s contribution to the UK economy, which has delivered above average growth for over a decade. Government figures for the industry show that UK space turnover increased by 15% in last two financial years; the UK space sector now adds £11.3 billion to the UK economy. In addition, employment in the industry has risen by 18.7% and exports have increased, with sales to Asia doubling since 2010/11, sales in Europe growing by 50% and sales to the Americas by 11%.

This success is largely due to continued public and private sector investment, enabling UK industry to retain its technical leadership in many space and satellite capabilities. This investment also keeps the UK on track for meeting its growth ambitions laid out in the Space Innovation and Growth Strategy. The Space IGS set the UK an ambitious target of growing its share of the global space market from 6% to 10% by 2030.

Andy Green, President of UKspace and co-Chair of the Space Leadership Council said: ‘I am delighted with the targeted investment in key space programmes vital for the success of the space industry. It is particularly welcome given the Chancellor’s limited scope for spending in this year’s Autumn Statement.

‘The Government’s support for space and committed to these ESA programmes is crucial to unlock a much bigger sum in private sector investment, helping to strengthen the UK’s industrial capabilities in this fast moving sector, leading to further innovation and economic growth.’

Steve Smart, Chair of UKspace commented: ‘I am extremely pleased that the Chancellor has recognised the economic importance of the UK space sector. These types of investment are critical to ensuring that the UK space industry retains its technical edge and competitiveness, and allow for the continued creation of high tech and value added jobs.

‘Crucially, this carefully focussed government funding will unlock significant private sector investment, drive innovation and keep the sector on its ambitious growth trajectory.’