A Call to Innovation and Partnership
By Doug Liddle, Chair, UKspace
The space sector stands at an exciting crossroads, with its influence expanding rapidly and its potential to drive economic growth, create high-value jobs and deliver technological progress more evident than ever.
Across the world, our key allies and adversaries are making significant investments in space-enabled infrastructure, recognising its importance for both economic prosperity and national security. In Europe, for example, France and Germany have recently announced additional multibillion-Euro commitments to strengthen their military and civilian space capabilities, building resilient satellite constellations and secure ground infrastructure to ensure operational advantage in an increasingly complex geopolitical landscape.
Unfortunately, in the UK we are yet to win the hearts and minds of the key stakeholders that would lead to similar prioritising of space capabilities. While British ingenuity has delivered remarkable achievements – from pioneering satellite technologies to enabling data-driven services that underpin daily life – space is often seen as a luxury rather than a necessity. The UK’s reliance on foreign satellite systems, such as the US’s GPS and the EU’s Galileo, leaves large parts of its critical national infrastructure vulnerable. Nearly 20% of the UK economy is enabled by space capabilities, yet the country has little control over many of these essential systems.
Current Funding Landscape and necessity for Creative Financing
Traditionally, the UK Government has played a pivotal role in financing space-based services and resilient satellite infrastructure. However, with public resources increasingly stretched and space falling lower down the list of Government priorities, it is no longer feasible for the public sector alone to fund the ambitious projects needed to keep the UK competitive. This challenge is not unique to the space sector; it reflects broader trends in public spending. The question now is how to continue growing, innovating and competing globally when traditional funding streams are insufficient.
The answer lies in embracing new financial models and creative partnerships. Relying solely on established Government funding and procurement processes will not deliver the outcomes the sector needs. The pace of technological change, the scale of required investment and the complexity of modern space infrastructure demand a fresh approach. Creativity in financing is now essential, not just desirable.
New Financial Models and Alternative Customers
Several innovative approaches are available. Private finance initiatives (PFIs) can bring private sector expertise, resources and risk-sharing mechanisms to the table, driving efficiency and accelerating project delivery. The Government’s role should evolve from sole financier to anchor customer, providing market certainty for private investors by committing to procure services or capabilities from new satellite infrastructure. This de-risks investment, encourages competition and attracts capital from beyond the traditional public sector boundaries.
Government-backed loans are another powerful tool, enabling businesses to access financing that might otherwise be out of reach. By providing guarantees or favourable loan terms, the Government can empower innovators to scale their operations and deliver transformative projects. Additionally, the UK should look beyond domestic demand and seek alternative customers, including international allies. Such collaboration not only opens new markets, but also fosters shared innovation and mutual security, strengthening the UK’s position as a global leader in space.
Government as a Strategic Partner
The UK Government’s evolving role should focus on acting as a strategic partner – supporting trade missions, facilitating export deals and championing British space businesses on the world stage. By working closely with industry, finance and academia, and by developing the National Space Strategy in concert with these stakeholders, the UK can create a fertile environment for investment and collaboration. The ambition must be more than just survival; it should be about reclaiming a leading international role.
A Call to Action
The future of the UK space sector depends on a willingness to innovate – not only in technology, but in the ways we finance and deliver progress. Today’s challenges demand creative solutions, bold partnerships and a shared commitment to securing the investment that will propel the industry forward. By embracing creativity and teamwork, the UK can ensure its space sector continues to thrive, delivering benefits for the economy, society and future generations.
UKspace stands ready to play our role in this endeavour.