The government will dissolve the UK Space Agency and absorb its budget and functions into the Department for Science, Innovation and Technology (DSIT) in April 2026 to reduce bureaucracy, save money and ensure ministerial oversight. Officials say the move will cut duplication and lower costs as part of a wider quango reduction drive. Critics warn of short-term disruption and a potential long-term loss of focus and international competitiveness. The UK Space Agency, established in 2010, supported astronaut missions, domestic small-satellite launch capability from Scotland and coordination of research and international partnerships. The space sector currently generates an estimated £18.6bn annually and employs 55,000 people.
The UK Space Agency will cease to exist as an independent entity to cut the cost of bureaucracy, the government said on Wednesday. It will be absorbed by the Department for Science, Innovation and Technology (DSIT) in April 2026. The government says this will save money, cut duplication and ensure ministerial oversight. But one leading space scientist said the move would lead to disruption in the short term and the UK losing ground to its international competitors over the long run.
"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," he said. ESA UKSA was created 2010 in response to the growing importance of the sector to the economy. The development of small spacecraft, satellites and space instrumentation is a field that the UK excels at, thanks in part due to the agency.
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