It’s been an important week for the UK space sector – set against a backdrop of fiscal challenge. Whilst we would have welcomed more measures to encourage investment and unleash innovation, the Chancellor positioned Wednesday’s budget as ambitious for UK technology, with confirmation of a major increase in funding for new R&D investment, rising to £22.6bn annually by 2029-30.
Wednesday 26 November and Thursday 27 November saw the 2025 European Space Agency (ESA) Council of Ministers (CMin) meeting. In her opening address, UK Space Minister, Liz Lloyd CBE, confirmed that the UK’s civil budget for space was set to increase by 8% from April 2026 – with funding through the UK Ministry of Defence and other departments still to be announced. We particularly welcomed reference to the “one government” vision for space, which will bring together our civil and military capabilities to deliver security and growth to our nation.
CMin meetings require significant preparation. Doug Liddle, Chair of UKspace, said: “I’d like to thank the Chairs of all UKspace’s committees and working groups, and our members, for their work to develop strong, evidence-based proposals across all ESA programme lines. We made a conscious decision to be ambitious, demonstrating industry’s appetite for international collaboration in the space sector.
“We also welcome the strengthening relationship between government (in particular UK Space Agency and Department for Science, Innovation and Technology) and the sector through this Ministerial period. The work done by all sides has enabled a proper dialogue between industry and government at a level not seen in previous Ministerials.”
Overall, CMin 25 has demonstrated a recognition across ESA member states that space is of strategic importance to growth and national security – with a record investment that will help further our shared space ambitions. Against a challenging backdrop, the UK has demonstrated a continued commitment to space and international collaboration through ESA with a £1.7bn investment.
Anisha Patel (Airbus Defence and Space & Chair of UKspace’s ESA Committee) added: “This investment will continue to drive economic growth by enabling technology that underpins our modern economy and sovereign capabilities, and sustain high-value jobs in the UK creating opportunities for the next generation of space leaders.”
ESA CMin only tells part of the story – and we look forward to further detail from Government on an enhanced national programme that will boost innovation and drive the development of national industrial capability.
Space provides the invisible infrastructure that underpins swathes of the UK economy. As a sector we stand ready to translate this commitment into new missions, new services and new industrial opportunities that will strengthen our role as a world-class space nation. UKspace will support our members to secure as much of this national and international investment as possible to drive growth and jobs across the UK.