A decision to fold the UK Space Agency into a government department has taken opposition parliamentarians by surprise.
The government says that putting the agency under the Department for Science, Innovation and Technology (DSIT) will cut duplication, reduce bureaucracy, and put public accountability at the heart of decision-making.
It says the change will bring together the people who shape space policy and those who deliver it, allowing for clearer ministerial oversight.
Taking place by April 2026, the new unit will keep the UK Space Agency (UKSA) name and brand and will be staffed by experts from both organisations.
However, Scottish Minister for Business Richard Lochhead has described the decision as a ‘bolt out of the blue’.
Writing on LinkedIn, he said: “First I’ve heard of this,” adding: “The Scottish Government hasn’t been consulted or informed by UK Ministers. And Scotland accounts for a substantial part of the UK’s space sector and ambitions.
“We regularly engage with the UKSA as do so many of our businesses and organisations.”
The minister said he intends to “seek urgent clarification from the UK Government as to what this all means and seek assurances.”
He added: “Well this is a bolt out of the blue!”
One space scientist, Dr Simeon Barber of the Open University, fears scrapping UKSA will lead to Britain’s space sector ‘losing focus”.
Orkney and Shetland MP, Alistair Carmichael, whose constituency includes the SaxaVord spaceport, said: “Having generally been pretty content with the efforts of the UK Space Agency in recent years, I would call this a case of ‘if it ain’t broke, why fix it’.
“There is no doubt in my mind from past discussions and debates in Parliament that the government takes a strong interest in supporting the space sector but I fear that this could be unnecessary disruption to the vital work developing our space industry in the isles and across the UK.
“What matters, however, are results. Whatever government body is leading the charge, as long as there is a strong, single-minded focus in government to get our space industry off the ground in the months to come, that is what counts.”
Space Minister Sir Chris Bryant defended the decision, saying: “You don’t need to be a rocket scientist to see the importance of space to the British economy. This is a sector that pulls investment into the UK, and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites.
“The aims for growth and security at the heart of our Plan for Change can’t be met without a vibrant space sector.
“Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector.”
UK Space Agency CEO Dr Paul Bate said: “I strongly welcome this improved approach to achieving the government’s space ambitions. Having a single unit with a golden thread through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality.”
The UK Space Agency was founded in 2010 and currently operates as an executive agency of DSIT. It helped introduce investment and revenue of at least £2.2 billion for the UK space sector in 2024/2025.
DSIT and the Space Agency will continue to work closely together over the coming months to support the UK space sector and ensure a smooth transition to the new arrangements. Further practical details on the merger will be announced in due course.
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