UK space industry boosted by reforms as government merges UK Space Agency with DSIT

The government will integrate the UK Space Agency into the Department for Science, Innovation and Technology by April 2026 to remove duplication, cut red tape, and place strategy, policy and delivery under direct ministerial oversight. The reforms form part of a wider Plan for Change to simplify public bodies, improve accountability and remove bureaucratic barriers. The UK space industry comprises over 1,100 companies and contributes £2.3 billion to the economy, supporting skilled jobs and critical infrastructure. The sector faces rising international competition and space debris, and the reforms aim to position the UK to capitalise on technologies such as in-orbit servicing and manufacturing valued in the billions.

Under the plans, the UK Space Agency (UKSA) will formally become part of the Department for Science, Innovation and Technology (DSIT) by April 2026. The move is designed to eliminate duplication across Whitehall and ensure that strategy, policy, and delivery are joined up under direct ministerial oversight. The changes form part of the Government's wider "Plan for Change", which aims to simplify the role of public bodies, improve accountability, and remove bureaucratic barriers.

You don't need to be a rocket scientist to see the importance of space to the British economy. This sector supports tens of thousands of skilled jobs and drives innovation across defence, science and technology. Bringing policy and delivery together under one roof will allow us to act faster, integrate better, and maintain the ambition that has made the UK a global player in space.

The UK space industry - comprising more than 1,100 companies and contributing £2.3 billion to the economy - is increasingly vital to national infrastructure. However, the sector faces challenges, from rising international competition to the growing issue of space debris. Ministers believe the structural changes will help Britain stay at the forefront of new technologies, including in-orbit satellite servicing, repair, and manufacturing - a market estimated to be worth £2.7 billion globally by 2031.

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