UK scraps independent space agency to cut costs
The UK government announced that it will dissolve the independent UK Space Agency, folding it into the Department for Science, Innovation, and Technology (DSIT) to streamline costs, cut duplication, and improve efficiency.
Founded in 2010, the UK Space Agency operates as an independent and executive agency of DSIT responsible for the UK’s civil space programme. Following this change, the agency will be absorbed into DSIT, although it will retain its name and brand as a unit within the government department.
This merger, announced on Wednesday 20 August, will occur by April 2026 and aims to improve efficiency and bring United Kingdom’s space programme under more direct ministerial oversight. The government said the new unit would be staffed by experts from both the independent UK Space Agency and DSIT.
The scrapping of the UK Space Agency as an independent body is part of a government-wide review to root out unnecessary bureaucracy and duplication. This same review saw the recent abolition of NHS England, the largest quango in the world, earlier this year.
Today’s announcement comes alongside the publication of recommendations from industry leaders on how to improve regulations for space missions, which the government said is key to unlocking a future market worth £2.7 billion by 2031.
It added that the UK is well placed to lead the way in the future of space industry, especially now the UK Space Agency has been absorbed by DSIT.
“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,” said Space Minister Sir Chris Bryant.
“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.”
The government said there are no immediate changes to UK Space Agency grants or contracts, and businesses and researchers currently working with the UK Space Agency do not need to take any action.
Further practical details on the merger will be announced in due course, it said.
