(2 days, 12 hours ago)
Westminster HallRead Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mark Garnier (Wyre Forest) (Con)
I beg to move,
That this House has considered the impact of the space industry on the economy.
I draw Members’ attention to my entry in the Register of Members’ Financial Interests and to my non-financial interests. For the purposes of this important debate, I speak as the chair of the all-party parliamentary group for space.
The global space industry is set to expand over the coming years as businesses take advantage of the huge drop in launch costs driven by tech billionaires such as Elon Musk with his SpaceX business and Jeff Bezos with Blue Origin. No longer is space the sole domain of Governments; it is available to everyone with an idea of how to exploit the opportunities that space presents.
Indeed, the global space economy in 2023 was valued at about $630 billion, but that number is expected to expand to $1.8 trillion by 2035—a compound annual growth rate of about 9%. Some optimists expect growth to outpace even that impressive figure, with expectations reaching as high as $2.2 trillion by 2035. Even for the most pessimistic economist, however, it is expected to still exceed $1.2 trillion, a figure that sees the global space industry outpacing global GDP over that period.
As I said, that growth is being driven by the 90% drop in launch costs over the last 20 years, but it is also being driven by commercial innovation in areas such as components and software. As clever people invent ever more clever things, deploying assets in the harsh and complicated area of space is becoming increasingly affordable. In turn, that has driven a broad set of investors to look to space for opportunities. Meanwhile, we have all become more relaxed and enthusiastic about the idea of space as a commercial entity in itself, and we already know that space has changed our lives enormously. After all, we have no excuse not to find a location or a fast route to a destination, now that we all have satellite navigation in our pockets.
That technology will enable fresh, new technologies. Companies such as Amazon are already looking at rolling out drone delivery services enabled by satellite navigation, and that will expand to things like driverless Uber taxis as we advance our driverless technologies. It is already the case that the technology behind satellite navigation goes far beyond just letting us know where the nearest pub is. Position, navigation and timing technology, or PNT, provides timing signals that enable our payment system. Who here realised that buying a ticket on the tube this morning, coming into work, was enabled by a satellite passing overhead at 17,600 mph?
According to a 2024 report by McKinsey, 60% of the growth in the space economy will be driven by five industries: state-sponsored defence, digital communications, supply chain and transportation, food and beverages, and consumer goods and lifestyle. The report also pointed out that space’s return on investment will be more than just financial. Space will play an increasingly crucial role in mitigating world challenges, ranging from disaster warning and climate monitoring to improved humanitarian responses and more widespread prosperity.
That is the fabulous opportunity globally, but what of the UK’s ambitions? Back in 2013, the UK Government set a plan to secure 10% of the global space economy. That plan would have given us about £180 billion of activity by 2035, but it feels like that ambition has been quietly dropped—not necessarily by this Government, but certainly over the closing years of the previous Government.
The UK space economy is valued at about £19 billion and supports some 52,000 jobs through nearly 2,000 businesses. That is a good start, but we need to be more ambitious. We need to decide what role we want to play in the global space economy, not least because the space economy will help us to address our productivity problems here in the UK.
At one end of the spectrum is the business of launch. Launch is, of course, a small part of the space economy, at about 10%—but launch is, to the purist, not really space. For sure, the space economy cannot exist without launch, but it is an enabler; it is logistics; it is the white delivery van of the space sector. It is, however, the most symbolic part of the space sector. It is the piece that fires the imagination; it is the image that excites people to follow space as a sector.
We have already had a successful horizontal launch from Newquay. Every part of the Newquay spaceport worked perfectly. The rocket separated from its Boeing 747 and successfully deployed the second stage into space. However, as we all know, a fuel filter in the Virgin second stage failed and the flight was lost, but Newquay performed in every way that it should have done. Later this year we will see the first vertical launch from the far north of the Shetlands. The SaxaVord spaceport has been working for years to develop the launch site, and it is entirely possible that the first launch from British soil will be with the British launch company Orbex.
The Government have financially supported both Orbex and the SaxaVord space centre, but those are private companies that also have private investors, which is crucial for the space sector. Unfortunately the right hon. Member for Orkney and Shetland (Mr Carmichael) cannot be here. He has had a prior engagement in his diary for a long time to go and judge a Blackface sheep competition, which he has to go to, but he has been instrumental in the success of the SaxaVord space centre, which has done an incredible job in delivering the first vertical launch from the UK.
Continued Government support for our launch sector is important. The Government have supported Orbex to the tune of £20 million this year, and that will pay for the development of low Earth orbit launches from SaxaVord. Orbex is keen to develop its product range, and its next milestone is medium Earth orbit with heavier payloads. Support for it to develop its next generation launchers could come from the European Space Agency and its European launcher challenge. The ELC programme is designed to turbocharge European launch opportunities.
With demand rising and the queue for SpaceX launches getting ever longer, there is a huge opportunity in Europe with the UK leading the charge. That is why the UK Space Agency is keen that the UK continues to support membership of the European Space Agency and its support for the ELC. Imagine our joy as a nation, with the Minister as the person partly in charge, when we see a British-designed and built rocket thrust skywards from British soil later this year. It will be a moment of intense national pride. But it is important that we have a follow-up to that key moment. We need to define what our ambition is for space and, to a certain extent, what we mean by “space”.
The last Government published a space strategy, but that was seen at the time as more of a list of hopes—a kind of manifesto, rather than a strategy with tactics and ambitions. We need to be clear about what it is that we want to do in this area that will undoubtedly increase UK productivity. We already know and recognise that the UK space economy broadly falls into five sectors. First, we have a strong service sector of downstream applications that are driven by satellites. This is the largest sector and includes satellite communications, Earth observation and navigation and timing services. Those sectors, as I have mentioned, power sectors such as agriculture, climate monitoring, finance, transport, humanitarian relief and defence applications. Because of the ever-increasing demand for data, the service sector is a lead growth driver for the space economy.
Second is our manufacturing and engineering sector, which manufactures rockets and satellites. The UK is a leader in small satellite manufacturing through companies such as Surrey Satellite Technology. But within this sector we have fascinating companies such as Magdrive, looking to develop non-chemical drive systems for in-orbit manoeuvring that will extend the life of a satellite significantly and, I believe, as much as twentyfold.
We also have lead companies here in the UK that look at the sustainability of space: Astroscale and ClearSpace. Both of them are excited about the upcoming announcement of a UK sovereign mission to literally clean up space debris. It would be helpful if the Minister could perhaps give us a clue about how that is progressing.
Then we have spaceports and launch—that great symbol of a spacefaring nation that I have already spoken about. Fourth is research and development, an area we have been strong at for decades. We are proud to have strong academic institutions doing extraordinary work in forging new technologies, including areas such as in-space manufacturing, where zero gravity makes for an interesting formation of crystalline materials. Fifth is space data and analytics, driven by huge leaps forward in artificial intelligence and big data.
But we should not see space as just about space stuff. I have long argued that we need to ensure we maximise the opportunity across all sectors of our economy, and that brings me to finance. The City of London has been innovative in finance for a few centuries now. It financed the growth of trade that built the British empire and our economy. Right now we have an opportunity here in London to seize the space finance markets. I look back at the inspiration given by the former Member for Kirkcaldy and Cowdenbeath when he was Chancellor of the Exchequer in the late 1990s. He saw an opportunity in the flagging UK film industry, so he created a financial trigger to encourage investment into that industry. Despite being abused by some who benefited from it, his tax break created investment into our film industry that has been transformational. The success of the UK film industry can trace its origins back to that single act. The Harry Potter franchise would have always been a huge success, but were it not for that single act of tax planning, those spells would almost certainly have been cast with an American accent.
That single act of tax planning can be adopted for the UK space industry. It does not need to be complicated, and it would generate more income for the economy than it would cost. Something as simple as, for example, tax-free commissions on space-related primary issues of bonds and equities would send a signal to the world’s top space financiers that the UK will be the centre of excellence for space finance. With all these bright financial wizards here in the City of London, space companies would be attracted to locate right here, to secure the finance and list on the London stock exchange.
It does not stop there. Our already strong space insurance market would get even stronger. Space legal services would grow. Our position as a global thought leader in the future of space would blossom, and—importantly, for our valuable financial services industry—the City would continue to be at the cutting edge of developing financial needs. It would create a symbiotic relationship between financial services, in which we are already world leaders, and the global space industry, in which we want to be among the world leaders.
I have spoken about how the Government can support the space sector, but I want to talk more about how the Government can be a customer of the space sector, and that brings me to the strategic defence review. The SDR looks good for space. It identifies the three main areas in which space is relevant to the Ministry of Defence. Watching situations develop from the height of space gives a spacefaring nation a tactical advantage over aggressors who do not have those advantages. We can not only look at the ground with the normal vision spectrum but use infrared Earth observation, which gives us the opportunity to spot a column of Russian tanks warming their engines in the dead of night ahead of an early invasion. Meanwhile, radio frequency observation gives us a chance not only to listen but to see where the enemy’s actors are located in a battlefield. We can see all sorts of activities across a range of spectra, in surprising detail.
Similarly, the SDR recognises that space gives us the advantage when responding to threats. Battlefield management and response can be orchestrated from space—again, giving us a tactical advantage. Of course, the SDR recognises that these space assets are, in themselves, a potential target, so defence of the space domain becomes as important a part of the MOD’s activities as defence of our own territories. Indeed, it is not just the MOD’s assets that need defending. While things such as Skynet are important to the MOD, position, navigation and timing satellites are important to our economy. As I mentioned, if we lose navigation satellites, we lose our entire payments system.
The SDR provides an opportunity for the UK space sector, and the trade body, UKspace, has already published an intelligent briefing note on the SDR, giving advice to members on how to take advantage of the review and what it means for the sector. It is optimistic, and so am I. Although the space section of the SDR’s 145 pages amounts to just one and a half pages, the document presents a lot of opportunities. The commitment to spend 3% of GDP on defence, and defence that seeks ever greater technologies, should be seen as a huge opportunity for the sector.
The document recognises that defence procurement is unfathomable for all but those with extensive experience—the primes. The review seeks ways of opening up Ministry of Defence procurement to small and medium-sized enterprises, which is a very good thing. The MOD, acting as the Government as a customer for space, must be easy to navigate for those wanting to sell and to support the Government.
The SDR raised one area of concern, which is where space sits in Government and who champions it. The SDR suggests a Cabinet Sub-Committee or ministerial group that looks after space. I have seen this before, having been on the ministerial group of 12, from memory, who could claim an interest in space. Back in 2017, it included the science Minister who had the lead in his portfolio, me as a trade Minister, a Minister from the Department for Exiting the European Union, and Ministers from the Department for International Development, the Foreign, Commonwealth and Development Office, the Department for Business, Energy and Industrial Strategy, the Ministry of Defence and anybody else we could think of. Some Ministers did not have a clue why they were on it. Others did not have much of an interest. In due course, space became a Cabinet Sub-Committee, chaired at the start by the Chancellor of the Exchequer and then by the Prime Minister. It met just once, I believe, and it was obsessed by launch, which is important but, as I have mentioned, represents just 10% of the space economy.
The problem is that space is both unique and ubiquitous. For a launch site operator, it is real estate. For a launch company, it is logistics. For PNT users, it is supply chain management. For internet users, it is data. For most, it is commercial. It is located in the Department for Science, Innovation and Technology, but most would agree at this stage of the cycle that one thing space is not is a science project. That is not to level criticism at either the DSIT Secretary or his civil servants, who do an excellent job of championing the sector.
Should space be in the Department for Business and Trade? That is an interesting question. I am delighted to see the Minister from DBT here today, who is responding on the commercial aspects of space—a side of space that is bigger, more important and more relevant to our economy than the simple science of it. However, the sector would far prefer the lead Department to be the Cabinet Office, as it crosses so many Departments—that is what organisations such as UKspace are saying.
I will finish with an example that illustrates the point. I chair the advisory board of the Space Energy Initiative and am a non-executive director of Space Solar Limited, with no financial interest in either. That is a good example of how space will deliver something vital for humanity, which is energy. Humanity has always needed energy and developing energy has progressed our societies.
We started as hunter-gatherers thousands of years ago, but after we learned how to farm and ensure regular calories for ourselves, we developed the skills that gave us civilisation and culture. When we figured out that coal produced more energy than wood, we started the industrial revolution that continues today. But we now realise that we need to produce energy at ever-increasing levels. Indeed, we heard in yesterday’s statement that the UK will need twice the capacity by 2050, and I wager that we will need it earlier than that.
We need to deliver that capacity sustainably. Demand for energy will go through the roof: by 2030, the US will be producing around 4,000 TWh of electricity a year. Just one need, global artificial intelligence, will demand more than that. As we are all moving to electric vehicles too, we can see the colossal problem facing us. Nuclear is good, and we heard yesterday that there will be plenty of opportunity, but it will take time, be expensive, and produce waste that is tricky to deal with.
Wind and solar are renewable and relatively cheap, but they are not baseload and not dispatchable. They cannot be predictably turned on and off as demand changes. Gas is both baseload and dispatchable, but we want to move away from gas for good reasons. Biomass is not what we thought it was, and nuclear fusion is a distant dream.
We need something that is sustainable, baseload, dispatchable and cheap—step forward, space-based solar power. Sounding like the stuff of science fiction, it has been possible for decades. Photovoltaics in space have been around since Sputnik 2 was launched in November 1957. Energy beaming was developed by Nikola Tesla in the 1880s, and we are familiar with it every time we listen to Radio 4 in the morning and hear one of our colleagues being beaten up by Nick Robinson.
What has changed is a 90% reduction in the cost of launch. That makes the economic model feasible, so space-based solar power is developing at pace around the world. The lead development, with what we believe is the best technology, is right here in the UK in Harwell. I am pleased that the Government have supported the development of this leading technology with £10 million so far. We have seen support from the European Space Agency’s SOLARIS project, other innovation projects and a range of companies and universities.
When I first pitched this to an Energy Minister under the previous Government, he said, “Yeah, but it’s space, no?” I pointed out that nuclear power is not part of the Department for Environment, Food and Rural Affairs because it is built on farmland, and he eventually got the point. That illustrates how the Government can make mistakes by looking at where space is, not what space is.
Space energy solves a load of problems. Because a beam can be moved near instantaneously, it can not only provide gigawatts of energy but balance the grid very simply. Electricity can be exported to eastern economies before we wake up, and to the US when we sleep and demand here is low, improving our export opportunities and balance of payments. It is dispatchable, baseload, cheap and green. It will transform our economy with endless cheap, reliable energy. We have had good support from the Department for Energy Security and Net Zero, but the first power will not be delivered before 2032, falling outside the Government’s target of carbon neutrality by 2030. Because of that arbitrary political target, we run the risk of losing the space energy race to other nations.
Although space-based solar power is an energy play, pure and simple, the associated engineering technology will transform our space sector. With satellites that are kilometres across, robotics are being developed in the UK to enable the manufacture and assembly of those satellites in orbit. The technology will enable the UK to take a lead in developing in-orbit assembly, thus further securing our place as a leading space nation.
We have the opportunity here and now to lead in energy—our most critical need and asset—and in the space sector. In yesterday’s statement, DESNZ made an interesting choice. Space energy can deliver gigawatts of space-based solar power within a decade, but the Government have chosen to invest £2.5 billion in nuclear fusion. There is no doubt that space energy is an engineering challenge, but nuclear fusion is a substantial physics challenge. I ask the Minister to come up and see for herself what genius is happening right here in the UK. We have an opportunity to seize the moment, but we must not be left behind.
Space is not just about where something is; it is about what it enables. Seizing both the metaphorical and literal high ground that space presents is vital for our economy, our productivity, our energy, our services and, frankly, how we save the planet.
Several hon. Members rose—
Mr Clive Betts (in the Chair)
Order. Five people want to speak and we have about 40 minutes before the wind-ups, so you can work out between yourselves roughly how long you have to make your contributions.
Sarah Russell (Congleton) (Lab)
It is a pleasure to serve under your chairmanship, Mr Betts. I thank the hon. Member for Wyre Forest (Mark Garnier) for securing this important debate.
I am delighted to say that my constituency is part of the space economy, as it includes part of the Jodrell Bank site. Jodrell Bank is the home of the Lovell telescope—an incredible, major radio telescope that was first built at the beginning of the cold war, after world war two. It is part of the University of Manchester, so I should say that my husband is employed elsewhere in the university but has nothing to do with Jodrell Bank.
The site makes a major contribution to the local economy, and its science contributes to our country’s global scientific stature. Two hundred people are employed on the site, and more than 180,000 people, including a great many children, visit the visitor centre every year. Members present may have fond memories of a Jodrell Bank school trip, and I have taken my children there since they were tiny. The site welcomes about 200 school pupils every day during school term time, providing early inspiration that a science career might be for them. The Jodrell Bank workforce is so important, and local businesses have spoken to me about the importance of our young people having a science, technology, engineering and mathematics education.
Jodrell Bank is far more than an employer and a visitor attraction, however. It is also a world-leading research facility that, for more than 80 years, has been making internationally important contributions to our understanding of the universe. I am very proud that it is part of my constituency.
The work done at Jodrell Bank requires dark, quiet skies, which means that future space technology needs to be deployed in a careful, consultative and sustainable way. The world has changed enormously in the 80 years since Jodrell Bank was built. As the hon. Member for Wyre Forest mentioned, where once there was a space race, there is now SpaceX. In that context, Jodrell Bank is also contributing to national space security and sustainability.
Scientists are now using the Lovell telescope and e-MERLIN—the enhanced multi-element, radio-linked interferometer network—to track satellites, monitor space debris and observe near-Earth asteroids using radar techniques. As space becomes increasingly congested and contested, that is a powerful and important capability in which the UK is playing an internationally leading role. It is vital to ensuring space situational awareness and planetary defence, which are key priorities of the UK national space strategy. This is not fantasy stuff: the possibility of satellite collisions risks everything from navigation to online banking, so this is crucial national infrastructure.
The increasing congestion of airspace has implications for air traffic control, and the economic value of supporting that work is very real. The world will, of course, continue to change—that is inevitable—and local businesses that are part of the aerospace industry could definitely move more towards space too. I spoke recently to Bird Bellows, an aerospace manufacturer in my constituency that creates bespoke, precision-engineered metallic bellows and flexible joints. It is incredibly specialist and is used to working to the very tight, regulated demands of the aerospace industry. Last week, I visited CLD, which, if the UK Government build infrastructure, is very likely to be the company that manufactures the fencing and other security that protects it.
It is fantastic that we have these local businesses, but there is real scope, particularly as part of the north-west’s investment in the net zero industrial cluster, for us to crowd in and work with academia and the manufacturing businesses in my constituency, of which there are many, to develop the space economy in my area. I want to see the high-skilled, high-value jobs and investment that can bring.
I am pleased that the Government are protecting record funding for research and development, which will be a relief to anyone who recalls the words of Jodrell Bank’s founder, Sir Bernard Lovell:
“civilisations that abandon the quest for knowledge are doomed to disintegration.”
Thanks to researchers such as those at Jodrell Bank, we may be safe for a while longer yet.
Andrew George (St Ives) (LD)
It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for Wyre Forest (Mark Garnier) on setting out the important case for the role of the space sector in the UK economy.
It is a pleasure to follow the hon. Member for Congleton (Sarah Russell), who outlined the importance and significance of the totemic Jodrell Bank. Likewise, I will refer to an important and growing contributor to the space sector in my own constituency at Goonhilly—people have different ways of saying that, with some preferring a phonetic pronunciation—on the Lizard peninsula. In the early 1960s, the Post Office established a telecommunications and satellite base there that became a British Telecommunications base. In 2014, it was taken over by Goonhilly Earth Station Ltd, a local company that is cutting a significant reputation in the space sector.
I am grateful to the hon. Member for Wyre Forest for mentioning Newquay as a potential launch site. All those experiments are important. They may come with failures along the way, but as he said, we learn from things that do not go fully to plan to improve our technologies. There will be successes and failures at the cutting edge of the space sector, but we will learn from that process.
When I previously represented St Ives, before my nine-year sabbatical from this place, it took four or five years to get Goonhilly Earth Station on to the former BT site in 2014. Since then, it has been doing incredibly well, despite a difficult start on a small base. It has regenerated the site and generated a reputation as a place with world-leading capability. Its core business is deep space research and activity, as well as commercial and defence-focused communication services. It is currently supporting missions around Mars and observing solar weather, and it provided communications and support to enable last year’s private moon landing.
The space sector is important to the UK economy, but we cannot take a “little England” approach to global communications because Earth turns on its axis and exists in a wider universe. In that context, as the hon. Member for Wyre Forest said, the positioning, navigation and timing—the PNT—of our sites in relation to the global sphere in which space science is being advanced is important. Goonhilly is in a critical location for tracking and managing satellites. The UK is an important geographic location from that point of view, but of course the context is one in which it has to establish contracts with companies and nations around the world.
Helen Maguire (Epsom and Ewell) (LD)
On the point about other countries and companies around the world, UK firms have been locked out of EU space programmes such as Galileo since Brexit, and the lack of a UK alternative has stunted the growth of dual-use military space innovation. Does my hon. Friend agree that long-term funding in this area is vital to secure both economic resilience and defence sovereignty?
Andrew George
Of course I agree. Clearly, the stronger the links made internationally, the more they will benefit the UK economy. Having seamless relationships with other countries is important. My hon. Friend mentions the Galileo programme, but also relevant is US GPS. All these connections clearly need to be maintained and fostered.
Not only is funding an issue, but so are contracts. As well as making the point that the sector operates essentially in the global sphere, I want to highlight the need for co-operation with other countries on contracts. There is an essential role for the UK Government in fostering contracts, not just with the European Space Agency but with NASA. A lot of companies in the UK will be looking to the Government to play that role.
I do not wish to take up anyone else’s time, so my final point is that we—and the Government—must back smaller enterprises such as GES in my constituency and many others. After all, they are the source of innovation and growth in the sector. Yes, the larger companies to which the hon. Member for Wyre Forest drew attention are very important; as he says, the space sector underpins 16% of UK GDP. A day without space would cost our economy £1.2 billion in its impact on financial transactions and so much else in how we live our lives in the modern world. This is an essential sector, but the small enterprises are there to expand the innovation frontier of the sector, and they are forging very strong links internationally as well. I urge the Minister to do all she can with the industry to facilitate contracts with NASA, the ESA and elsewhere internationally.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
It is a pleasure to serve under your chairship, Mr Betts. I thank the hon. Member for Wyre Forest (Mark Garnier) for securing this debate, which is really important, particularly to the people of Cornwall.
Cornwall’s unique geography gives us an advantage in a range of industries, and space is no exception, thanks to our remoteness, open skies and position jutting out into the Atlantic. Our growing space sector has enormous potential, not just for innovation, but for real economic opportunity across all our communities in Cornwall, which is really needed.
Spaceport Cornwall, which others have mentioned, is based at Newquay airport and in 2023 hosted the first horizontal satellite launch. Although the launch was ultimately not fully successful, it put Cornwall on the map and the spaceport itself worked perfectly. Ours is the first licensed spaceport in the UK and the only operational spaceport in Europe. With a 2030 carbon neutral target and the aim of being the first net zero spaceport in the world, it is also leading the way in making the space industry more sustainable. The spaceport education programme has done brilliant educational outreach in Cornwall schools, so there was a huge crowd in the middle of the night to watch the horizontal launch. A generation of Cornish children were inspired to reach for the stars, quite literally, and I really hope they will be able to do that from Cornwall in the future.
Goonhilly Satellite Earth Station on the Lizard peninsula is another pioneer in the space industry. It is in the constituency of the hon. Member for St Ives (Andrew George), so he has talked about it in some depth already. In 2021, it created the world’s first commercial lunar and deep space communications network, and it has a bilateral pilot with the UK space industry, which enables it to provide operational support to international partners. I hope, as I am sure the hon. Member does, that the funding for that will be renewed, because it is an incredible organisation. If the Minister is in the area, she should go and see it.
A number of innovative SMEs and start-ups connected to the space industry, as part of Cornwall space cluster, have coalesced around the spaceport in Newquay and Goonhilly. The cluster is growing exponentially; it now has 477 businesses, having grown by 47% since 2018, and generates £116 million gross value added. It represents what could be a strong, innovative growth sector in Cornwall, bringing specialist jobs to a place that very much needs them.
We in Cornwall also have some of the best space courses and career development in the country. Truro and Penwith college, which is in my constituency, offers apprenticeships and degree courses, including the world’s first higher national certificate and higher national diploma in space technologies. The University of Exeter offers space graduate, postgraduate and short courses and workshops, and is a world-leading university for related climate and sustainability research.
Cornwall is world leading in this field, but despite being operational, Spaceport Cornwall has received no launch funding for the past two years. We need a national space strategy that recognises the value of regional clusters such as Cornwall’s. We also need strong leadership. The hon. Member for Wyre Forest made a good point about ownership in government; the industry touches many different Departments, but someone needs to grasp it, take ownership and drive it forward. It is often innovative SMEs that drive growth in the space sector, and they need to be supported through contracts rather than one-off grants, as the hon. Member for St Ives said.
We must also ensure that the economic benefits of the Cornish space industry are felt by the people who live there, rather than just by people coming in and out—people doing the space sector to us. Our space industry is not just a collection of buildings and equipment; it is a thriving network of people, businesses and educational institutions that has the potential to bring great economic value to the duchy and lift children’s aspirations for generations to come.
Jim Shannon (Strangford) (DUP)
What a pleasure it is to serve under your chairship, Mr Betts. I thank the hon. Member for Wyre Forest (Mark Garnier) for leading the debate. He obviously has an incredible interest in the space sector; if he ever appears on “Mastermind”, this will be his chosen subject. I mean that in a nice way, because I believe that we can all benefit from his interest and knowledge. I am sure that the Minister agrees.
Space assets are crucial to United Kingdom national infrastructure, as well as safety and defence mechanisms such as navigation and communication. Modern technology is a wonderful thing—I do not quite understand it all the time, but that is just me—but we must not underestimate the contribution made by our space sector. For that reason, it is great to be here to make a contribution.
It is always a pleasure to see the Minister in her place. She is a friend of many of us in Northern Ireland, and we have brought many subjects to her attention. I appreciate that she always responds in a positive way, and Northern Ireland MPs will vouch for that.
I am going to give a Northern Ireland perspective. Some people, perhaps some not too far away, may wonder what Northern Ireland’s input into the space sector is. First, it is 8,000 jobs, so let us be clear that it is not just a small sector in Northern Ireland. It is an important sector; we are to the fore in ensuring that Northern Ireland plays a growing and successful part in the space industry, with a focus on satellite technology, aerospace engineering and data analytics. In particular, Northern Ireland has a rich history in aerospace engineering, defence and aerospace projects in my constituency—that is obviously where my interest comes from—as well as across the whole of Northern Ireland.
Carla Lockhart (Upper Bann) (DUP)
In Upper Bann, I see at first hand the potential of the space industry, with my area having one of the strongest advanced manufacturing bases in Northern Ireland and being home to companies that contribute to aerospace and high-precision engineering, both of which are important to aerospace sector technologies. Does my hon. Friend agree that, to release Northern Ireland’s full potential in aerospace and in the contribution that it can make to the UK-wide air strategy, we need a seat at the table? Any future UK policies on aerospace and the space industry need to have Northern Ireland at the table.
Jim Shannon
My hon. Friend is absolutely right. In fairness to the Minister, I feel that her intention is to ensure that that will happen. I hope she will confirm that today. It is important.
Our aerospace heritage brings more than 8,000 jobs to Northern Ireland. I am sure—indeed, I know—that the Minister is very much aware of the current breakdown of jobs, with Magellan Aerospace back home and the ongoing discussions regarding the Spirit AeroSystems takeover, which will have an impact on jobs in my constituency and further afield, including my hon. Friend’s constituency. I will just let the Minister know in advance that topical question No. 6 tomorrow will be on Spirit AeroSystems. The Parliamentary Private Secretary asked me yesterday to make sure that I got the booking in for that. I will send on the question officially, but that is what it will be about.
Northern Ireland aerospace has a 70-plus-year heritage and contributes £151 million to UK GDP. I know Thales operates in other parts, but some £81 million is in Northern Ireland itself, which highlights the importance of our contribution to the UK space sector and the economy. The Minister has visited Thales and will do so again, I hope, in the not-too-distant future. We cannot underestimate the impact that such industries have in the UK economy. Northern Ireland has successfully attracted investment and funding for space-related projects specifically, and we are keen to do more of that, as my hon. Friend the Member for Upper Bann (Carla Lockhart) said. The Department for the Economy in the Northern Ireland Executive, for example, is actively promoting the growth of the space sector. It is very much a core issue for us back in Northern Ireland, including in the Department.
To give some information about what we do back home, on 24 May just over a year ago, Queen’s University Belfast was at the centre of plans to harvest solar power in space to produce a potentially endless supply of net zero energy, to help turn around the world’s climate crisis. That is very futuristic, but what do we know? Will the futuristic things we saw in “Star Trek”—“Beam me up, Scotty”—ever happen? I do not know, but with the progress of technology, someday it might be possible.
The fact that Queen’s University is involved and out there is an indication that such partnerships can very much show the way forward. Their incredible, fantastic work has brought two huge industries of the future together. It will give opportunities in the sector to hundreds of students who have a real interest in working in it. This is not just about today, but about the future and preparing our university students for that future, so that they can be part of it. The Minister might wish to respond to that as well.
In 2021, the then Conservative Government published a national space strategy. I am sure that the hon. Member for Wyre Forest, who introduced the debate, had some input into that. It described the UK’s 10-year vision to build one of the most innovative and attractive space economies in the world. That was the previous Conservative Government saying that, so I am interested to hear the Minister’s thoughts on progressing that 10-year plan and where we are now, because we all—the then Opposition, too, I think I am right in saying—supported that strategy and plan, as we could all see its progressive and visionary potential.
The strategy included the UK becoming the first country in Europe to achieve a small satellite launch from a UK spaceport, and establishing itself as a leader in commercial small satellite launch. The hon. Member for Wyre Forest mentioned that, and the right hon. Member for Orkney and Shetland (Mr Carmichael) would have, I am sure, had he been present, although the attraction of judging blackface ewes might just overtake it as a subject, because that is a hands-on relationship with his constituents.
Satellites are used for many different things, including navigation, communications, targeting munitions and threat analysis. We can be to the forefront in that. Currently, the UK relies heavily on the US and other nations within the EU for defence-related services. I therefore believe it is pivotal that we in the United Kingdom of Great Britain and Northern Ireland are in a position to use our own methods and technology to preserve our own safety and support our own military. I know we cannot do everything by ourselves any more—it is not wise or focused to do that—but it is important that we have the potential to do some of our own stuff. We need to have the US and the EU, and to work within NATO, but we also need to have the ability to respond on our own merit and our own ability.
The Government reported that, between 2022 and 2024, the total value of contracts secured by the UK through the ESA was £844 million, but I believe that we must do more to fund our own industry, so that we can become leaders in paving the way in the space industry. There is no reason why the companies here in the United Kingdom of Great Britain and Northern Ireland cannot do that. Setting out this case has always been a passion of the hon. Member for Wyre Forest; he has always pushed this, and we should all support him in how we take this forward.
To conclude, protecting the UK space sector affects several areas, whether it be safeguarding against threats to sustainability or monitoring space incidents. We must do more to protect it. The contribution to the economy made by the devolved Administrations—this is one of the great beauties of this United Kingdom of Great Britain and Northern Ireland, where four come together as one—pushed by the Minister here in Westminster to all our advantage, and by the devolved Administrations, cannot and will not be ignored.
I look to the Minister again for commitment and enthusiasm in ensuring that jobs are protected and the best decisions are made for the benefit of the United Kingdom space and aerospace sectors. I believe we can all benefit. I think the Minister is committed to that, and I look forward to her answers.
Chris McDonald (Stockton North) (Lab)
It is a pleasure to serve under your chairmanship, Mr Betts. When we think about space, it is a natural instinct to look towards the skies, but actually someone wanting to find out a lot about what is happening up there could do much worse than dive one mile underneath the North York Moors—something I did a number of years ago when I went underground at the Boulby potash mine in the constituency of my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer).
I had never been down a mine before, and this was the second deepest mine in Europe. In the cage, we were swallowed into the darkness and down this incredibly deep lift shaft, then travelled miles underground, bumping around in a beat-up old Land Rover to get to the face of the mine. We then came to a state-of-the-art facility: an underground dark matter laboratory operated by the Science and Technology Facilities Council. It is positioned there because it is safe from atmospheric radiation. Part of what the laboratory does is enable research into dark matter, which will help us to understand how to survive in hostile environments—on Earth and beyond it, in space—and contributes to technologies such as quantum computing. That is just one of the facilities that forms the cornerstone of the north-east of England space community. I want to talk a bit about that today. I must also declare that a close relative of mine is employed adjacent to that sector.
When NASA decided to build the James Webb space telescope, that was of course a great national effort for the USA, but it came to Durham for the development and engineering of the telescope. It was Durham University’s centre for advanced instrumentation that constructed the infrared spectrograph integral field unit— I am sure that everyone here knows what those five words mean individually, although when taken together they might be a little more confusing.
We heard from the hon. Member for Wyre Forest (Mark Garnier)—I congratulate him on securing this debate—about the defence applications for such sensing technology, and there can be that crossover with different industries. But that centre at Durham University had the ability to develop and manufacture those components. We should be proud, as a nation, that NASA comes to the UK to obtain such components.
Space is happening in the north-east, particularly at NETPark, which is in the constituency of my hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland), but also quite close to my constituency; many of my constituents work there, too. It is home to three of our catapults: the Satellite Applications Catapult, the High Value Manufacturing Catapult, and the Compound Semiconductors Applications Catapult. It also houses a number of companies. Filtronic makes mission-critical electronic components in the satellite supply chain; Lockheed Martin is working with Northumbria University on the North East Space Skills and Technology Centre; and Octric at Newton Aycliffe is the Government owned semiconductor manufacturing facility.
Interestingly, Durham University business school is also working on the legal and ethical aspects of space exploitation, as we put a framework around how we can globally work together in space. There are wider economic benefits in our region. Currently, the sector contributes £130 million to our local economy; 1,300 people are employed in about 48 businesses. But the north-east of England space cluster hopes to grow to 10,000 employees over the next few years.
Our regional strengths are in space manufacturing, earth observance, climate intelligence and connectivity. Having listened to the hon. Member for Strangford (Jim Shannon), I think there are great similarities between the strengths in the north-east of England and in Northern Ireland—clearly, the satellite communications and technologies are similar; perhaps our shared history in the aerospace and defence sectors has enabled us to develop those.
However, there are gaps in this growing cluster and things we could do to enhance it. I have spoken a bit about the strength in our local universities, which provide early-stage research, and in the businesses. But there is a gap in the middle—there always is. Our catapult centres can help with that, but in the UK many sectors have suffered from having developed technologies but then not progressed them through the so-called valley of death, so that they are then exploited elsewhere. If we want to take advantage of our great opportunity for financial investment, identified by the hon. Member for Wyre Forest—it could be the engine that really drives the growth of the 48 primarily smaller businesses in the north-east of England—then we need the Government to work with industry to de-risk and accelerate those technology investments. I hope that the Government will invest, particularly in those catapult centres at NETPark, while supporting small businesses as they develop those technologies as well.
Space is happening in the north-east of England. It is one part of the UK’s space economy. It will certainly be important for the future of the economy of north-east England and vital for our defence and aerospace industries, too.
Mr Clive Betts (in the Chair)
We now move on to the Front-Bench speakers. I call Victoria Collins, for the Liberal Democrats.
Victoria Collins (Harpenden and Berkhamsted) (LD)
It is a pleasure to serve under your chairmanship, Mr Betts. I thank the hon. Member for Wyre Forest (Mark Garnier) for his passionate and expert input today; he certainly got my cogs turning. I am sure that the Minister has been taking notes.
Every day, 18% of Britain’s economy depends on technology orbiting 300 miles above our heads, from our morning coffee purchase to the GPS that may have got us here today. As I learned this morning, even paying for our tube tickets depends on the satellites above us. Satellites orchestrate our daily lives. Nearly one fifth of everything that we produce as a nation now relies on the invisible infrastructure spinning above us.
The UK space sector has achieved something remarkable: in just three years, it has grown from a £7 billion industry into a £18.9 billion powerhouse, with more than 52,000 jobs across the country. Today we have heard about Scotland, Cornwall, Northern Ireland and the north-east, with their vibrant and growing industry, manufacturing, launch capabilities and data. Further downstream, in my constituency of Harpenden and Berkhamsted, the Rothamsted Enterprises centre hosts companies such as Agrilytix, an agricultural monitoring system that uses satellite imagery and machine learning to provide enhanced decision support for smaller farms in challenging environments. Locally, I have also spoken to Daniel, a co-founder of Safe Citizens—a platform that alerts citizens’ mobile phones if they are in the vicinity of potentially dangerous incidents, while remaining anonymous and reducing battery use.
Overall, the space economy represents growth that is three and a half times faster than that of our broader economy. Yet despite that remarkable success, Britain continues to under-invest compared to our international competitors. Just last week, the Royal Society warned that the UK risks missing out on one of the most significant technological and economic opportunities of the next half century unless we adopt a more coherent, forward-looking vision for space. We have an opportunity to lead the world in one of the most significant economic sectors of the 21st century, but only if we act now with vision and purpose.
Let us explore more where Britain stands within the international space industry. We host more than 1,500 space companies and rank as the world’s leading producer of space research. Additionally, 50 UK universities, including Durham University, mentioned today, contribute to cutting-edge space technology. We attract more private space investment than any nation, excluding the United States. But here is the challenge: while we excel at innovation, we lag in strategic investment, as was eloquently highlighted by the hon. Member for Wyre Forest and also mentioned by my hon. Friend the Member for St Ives (Andrew George). Our space sector could reach £32 billion by the end of the next Parliament, creating up to 50,000 additional jobs. However, that potential will remain unrealised without proper Government backing.
Additionally, the international context around space is experiencing unprecedented growth. My hon. Friend the Member for St Ives talked about the importance of working internationally, as did the hon. Member for Wyre Forest. That rapid expansion brings significant challenges that we cannot ignore. Space is becoming increasingly crowded and contested, as the hon. Member for Congleton (Sarah Russell) also highlighted. We are witnessing a growing problem with space debris, as defunct satellites and rocket fragments threaten active missions and could eventually make certain orbits unusable for future generations.
Beyond environmental concerns, we are also watching space become increasingly militarised and contested. Without proper governance, space risks becoming dominated by whoever can afford the biggest rockets, rather than it serving humanity’s shared interests. Britain must advocate for responsible space development; innovation must serve society’s needs and not just commercial interests. That is why the Liberal Democrats believe that space must be a national strategic priority, but one that is pursued responsibly. Last year, the Government met only 31% of their physics teacher recruitment target and only 37% of their computing teacher target—subjects at the base of our space industry. What are the Government doing to address those shortages? Unless they do, we cannot build the skilled workforce that our space sector requires.
To quote the great Tim Peake, life in orbit is “spectacular”. That is why, as Liberal Democrats, we are also committed to increasing research and development investment to 3.5% of GDP by 2034, which would position Britain among the world’s leading space powers. Additionally, we would invest in science, technology, engineering and maths education; the hon. Member for Congleton highlighted the importance of that as well as of teacher recruitment.
What is the Minister’s view, or the view of the Department for Business and Trade? How does it link with our industrial strategy and workforce planning to support regional space hubs—from Scotland’s satellite clusters to Cornwall’s spaceport—and provide long-term funding that allows researchers to develop breakthrough technologies? The Liberal Democrats would also introduce proof-of-concept funding to bridge the gap between academic research and commercial application. We would ensure that public investment in space technology benefits the public, not just private shareholders. I would be interested on the Minister’s comments on that.
The Liberal Democrats would also reform UK Research and Innovation, as well as the British Business Bank, to ensure that public funding supports the public good, allowing the British to benefit from advances in UK space technology. Finally, on the international front, we will champion co-operation through organisations such as the European Space Agency while advocating for environmental stewardship in space development. The orbital environment must be protected for future generations.
In conclusion, Britain stands at a crossroads. We can continue to punch below our weight while others shape the space economy, or we can reclaim our position as a global leader in science and technology. With proper investment, strategic vision and responsible governance, Britain can lead the world in space technology. In all, that would not only be an economic opportunity for our country, but ensure that we stuck to our responsibility to protect space for future generations.
I thank the hon. Member for Wyre Forest once again for securing today’s debate. Together we can strengthen our economy, creating high-skilled jobs and developing technologies that solve real problems for communities across Britain. By doing so, we can ultimately “reach for the stars”, like the children, mentioned by the hon. Member for Truro and Falmouth (Jayne Kirkham), who were watching as rockets were launched into space.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate my hon. Friend the Member for Wyre Forest (Mark Garnier) not only on securing this debate, but on his comprehensive opening speech—his knowledge is almost encyclopaedic. I also thank him for the leadership that he has shown on space in this Parliament and previous Parliaments, in particular as chairman of the all-party parliamentary group for space.
We have had a very good debate this morning, with contributions of great quality from both sides of the House. In that cross-party spirit, let me say that the hon. Member for Stockton North (Chris McDonald), in particular, hit many nails directly on the head. We clearly share an interest in the Satellite Applications Catapult, which has a base in my constituency, although I detected a note of disdain in his voice when he talked about battered Land Rovers. I would argue that a battered Land Rover is a sign that that great miracle of British engineering has been used properly and to its full capability.
It is a privilege to speak in this important debate on the state of the United Kingdom’s space industry, a sector of strategic importance to our national economy, scientific capability and future prosperity. Let me begin by making one thing very clear: the United Kingdom has the potential to be a true spacefaring nation. We have the scientific expertise, entrepreneurial ambition and geographic advantage to build a world-leading domestic space sector.
In my constituency, the space industry is totemic. From the Westcott space cluster and the national space propulsion centre at Westcott Venture Park, to UK Space Command’s headquarters and the national space operations centre at RAF High Wycombe at Walter’s Ash—the nation’s military hub for space operations, workforce development and space capability delivery—Mid Buckinghamshire stands out not only as a showcase for the space industry, but as an incubator for research and development. It is a true representation of the sector in its entirety.
The Labour party came into office with a good promise of a bold new era for science and technology. Its manifesto committed to supporting high-growth sectors, including space, and spending on sovereign capabilities to secure Britain’s place on the global stage. I hope the Minister can confirm that all that will become a reality, because in practice—and the Opposition are right to challenge the Government and kick the tyres when good promises are made—we have seen little more than rhetoric and inaction so far.
Since July 2024, the space sector has been left in policy limbo. Programmes vital to our future competitiveness have been stalled or scrapped. Promised investment zones with a focus on aerospace innovation have failed to materialise. I hope the Minister can correct that. The much vaunted Labour industrial strategy, which was supposed to support clusters in places such as Harwell, Leicester and Cornwall, remains a mystery. Perhaps she can confirm when we will finally see it.
The consequences are tangible and severe. We are already seeing UK-based satellite developers and launch technology firms relocate to more supportive environments abroad. Domestic providers face growing uncertainty in accessing long-term capital, while investors are left wondering whether the Government have any meaningful plan to support this vital sector. That is a blow not just to British industry, but to local economies. The space industry is not confined to a few square miles of south-east England; it is an ecosystem that stretches from satellite testing in Glasgow, to launch infrastructure in the Shetlands and mission control in Oxfordshire. Cornwall, as others have spoken about, also plays an important role. Every contract cancelled and every research and development grant deferred is a missed opportunity for skilled employment in communities that need it most. By contrast, under the previous Conservative Government, in late 2023, UKSA launched its national innovation programme, with up to £65 million distributed over four years, including a £34 million first tranche aimed at low technology readiness level disruptive technologies.
What of the young people inspired by the promise of a career in space science? The previous Conservative Government made education and outreach a priority. We backed science, technology, engineering and maths education, supported apprenticeships through the National Space Academy, and ensured that British students were represented in flagship European and international missions. Labour, by contrast, has made no clear commitment to supporting science education in the context of space, nor has it outlined any plan to secure future UK participation in global space exploration partnerships.
I must also raise the issue of our highly specialist supply chain, which sees components built in Wales, avionics manufactured in the midlands, propulsion systems designed in Surrey, and the excellent work of the national space propulsion centre at Westcott in my constituency. These are the unsung heroes of the UK’s space sector. They rely on steady R&D investment and long-term procurement planning. However, Labour’s failure to provide certainty on either means that many of those SMEs face an existential threat. They are simply relying on measures that we originally put in place.
The space industry, by its nature, is built on long-term vision. The last Conservative Government understood that. We launched the national space strategy, invested in sovereign launch capability through Spaceport Cornwall and SaxaVord, and worked to ensure that the UK could lead in space sustainability. We stood up for British science post Brexit by negotiating critical participation in global satellite projects. We now need a recommitment to that vision, which this Labour Government have so far failed to provide.
When will the Government publish a revised and fully funded national space strategy? When will they provide certainty for R&D tax credits to incentivise investment? When will they deliver on their manifesto pledges to support sovereign UK capability in launch, satellite navigation and Earth observation? If they are serious about Britain being a science superpower, they must start treating the space industry as the strategic asset that it is; otherwise, we risk watching our world-class talent, our world-leading innovation and our national ambitions quite literally leave for other shores.
Conservatives remain committed to the UK’s future in space technology. We will continue to make the case for ambition and leadership in a sector that speaks to the best of our country, scientifically, economically and aspirationally.
The Minister for Industry (Sarah Jones)
It is a pleasure to serve under your chairmanship, Mr Betts. I join everybody else in congratulating the hon. Member for Wyre Forest (Mark Garnier) not just on securing the debate, but on the quality of the debate and the leadership he has shown as chair of the APPG for space. We have had an excellent debate and a lot of shared issues have been brought up. I was struck by the range of different parts of the country in which the space industry is thriving. It is important to understand and acknowledge that.
The hon. Member for Wyre Forest set out the case for the space industry. I do not think I need to repeat any of that, but he spoke about understanding the economic and productivity benefits, as well as the huge benefits to humanity, of satellite technology; how we can mitigate the challenges that the world faces through space; the opportunities for other sectors, such as finance, that are increasingly becoming part of this landscape; and the role of Government as a supporter of space but also as a customer. All those points were very well made. He also talked about the work that UKspace does—it is right that we acknowledge the importance of that organisation—and about businesses from the SMEs to the larger companies, and the ecosystem as a whole.
I will come to a number of points, but one of the most important is that, in a couple of weeks, we will have our industrial strategy, which will set out and prioritise the sectors in advanced manufacturing that are crucial and where this Government intend to turbocharge growth. I cannot reveal the contents of the strategy, but I can say that we are on the verge of having it, and I hope that everyone here will appreciate what is in it.
Later this year, we will hopefully see, for the first time, British satellites on British rockets launching from Scotland. I am putting in my bid to be there, and everyone else is welcome to do the same. I imagine it will be quite a thing to see; it is very exciting. We will also host a global space finance summit at the end of this year. I hope that the hon. Member for Wyre Forest will be able to come to that event, which I think will be an important and useful opportunity to bring in the finance element of this debate.
My hon. Friend the Member for Congleton (Sarah Russell) talked about Jodrell Bank and the Lovell telescope, and made important points about STEM education— I think pretty much everyone mentioned the importance of that. We have set up Skills England and, through our industrial strategy, we are working with the Department for Education to ensure that we tilt towards the courses that we need. Of course, STEM is key to that. My hon. Friend was also right to talk about the north-west cluster.
The hon. Member for St Ives (Andrew George) talked about Goonhilly and the importance of that resource to the country. My hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) talked about that, too, and about the importance of Spaceport Cornwall and the skills there.
The hon. Member for Strangford (Jim Shannon) talked about Northern Ireland, as he always does. He was right to highlight the importance of the defence and aerospace industry there and, in that context, the continued importance of the debate on Spirit. I think we can all be grateful that we were in this place when he said, “Beam me up, Scotty!”—I enjoyed that contribution.
As the hon. Member for Mid Buckinghamshire (Greg Smith) said, my hon. Friend the Member for Stockton North (Chris McDonald) hit the nail directly on the head, as he always does in relation to many different sectors. He talked about going down the Boulby mine, the cluster in the north-east and the importance of avoiding the valley of death scenario that we face in many different sectors, where we get brilliant research but do not quite manage to bring it to commercialisation, it goes offshore and we lose all that talent. Those were all very good points, well made.
I was asked by the hon. Member for Wyre Forest about the national debris mission. It is going through the next stage of approvals and is a live procurement, so I cannot comment on it, but I wanted to ensure that I responded on that.
We have all talked about the importance of our space industry here in the UK. It is the largest in Europe by revenue, by number of companies and by workforce, and, as was mentioned, it is one of the most productive parts of our economy, with almost 2.5 times the average labour productivity. As the Minister for Industry, in the past year I have had the opportunity to visit and speak to many of those fast-growing space companies. They include homegrown talents such as Space Forge, which I am sure several of us will have met, and BAE Systems, and companies from overseas that have chosen the UK as one of their homes, including ClearSpace and Lockheed Martin. I have had the opportunity to talk to them about their plans for growth and how the Government can support their ambitions, as well as engaging with the trade associations UKspace and ADS, which so keenly support our industry.
As I said, the industrial strategy will come out in a couple of weeks. It will be a 10-year long-term plan. One of the eight growth-driving sectors that we have identified is advanced manufacturing, and we will use the strategy to engage with businesses on the complex areas of policy that we need to address, including finance, planning, energy costs and grid connections, so that we can promote long-term growth.
We want to help more space companies to industrialise, and that means better access to finance and more strategic ways of working with individual space companies. It also means concentrating our efforts on a more targeted portfolio of space capabilities. In other words, we already do this well, so let us take full advantage of that and get a competitive edge. For example, we know that space technologies and services play a vital role in climate action, maritime domain monitoring, telecommunications, the gig economy and apps that rely on persistent positioning. The UK is already strong in the services and applications that space technology enables. Ensuring that space companies can overcome the complex and capital-intensive challenges to excel in these areas will be key to growing the industry now and in the future.
We also want to create a more resilient supply chain, which the hon. Member for Wyre Forest talked about, while improving regulations, which will be needed to enable more activities in our space industry. Of course, DBT does a lot of work in this policy area, but other Departments are important too—I will come to the challenges in a minute. Of course, the Department for Science, Innovation and Technology takes a lead, and the MOD, which published its new strategic defence review last week, is clear that being first in NATO means accelerating and enhancing our military space capability, so it recognises that there is more to do. We need to go further and faster, especially working with commercial companies. Towards the end of this year, all Departments will publish clear delivery plans that set out their priorities for space, their capabilities and exactly how we will work to deliver those priorities.
The hon. Gentleman spoke about the challenges that he had in government navigating the many industries that are responsible for space. We inherited that challenge and have not entirely resolved it. So many Departments have an interest in space for legitimate, very good reasons. A group of Ministers has met to talk about the challenge, and we are planning what to do. I am sure that as soon as we have anything to say on that front, we will come back to the hon. Gentleman. I recognise the challenge. So many things are happening in space, so many aspects of our lives are affected by it, and so many Ministers have a huge interest in it. That will always be the way, and we need to navigate that in a way that enables us to be laser focused on our priorities. We have a clear strategy and we are very ambitious about what we want to achieve.
I am grateful to the hon. Gentleman for securing a debate on this topic. We are absolutely committed to supporting our fantastic space industry, and are already investing in and supporting it. Last month, I celebrated Space Forge’s latest fundraising round, in which it secured £22.6 million. I was pleased to announce the opening of OHB’s new base in Bristol at the Farnborough international airshow—I think the hon. Gentleman was there. Earlier this week, I announced the Government’s support for a space industry partnership between BAE Systems in the UK and Hanwha Systems in South Korea, which is a massive step forward for one of the UK’s leading companies. We have really strong examples of international partnerships, the financial impact and the foreign impact, showcasing the power of our space industry to reach out around the world.
Andrew George
The Minister mentions the importance of international partnerships. In the context of the unpredictable environment in which negotiations take place, particularly with regard to trade with the US, what conversations have taken place between the UK Government and NASA? It is clear that a lot of UK companies, large or small, depend on ensuring that such relationships and future contracts are well founded.
Sarah Jones
The hon. Gentleman makes a good point. NASA and the European Space Agency are both really important in terms of ensuring that our companies get the contracts they need. We will work with our American counterparts on that. My focus with our American counterparts in recent weeks has been more on the UK’s steel industry, automotive industry and aerospace industry, up to a point, but I will take away the hon. Gentleman’s point about NASA. Of course, we need to support our companies in getting contracts, and we work closely together.
We can have different views about the future of space. Tim Marshall’s great book on the future of geography, which I have read, talks about space not in the context of a leap into a beautiful, unknown world, but as a continuation of the power struggles here in the UK, so it is important to work collaboratively across all kinds of agencies if we are to find a way forward. The spokesperson for the Lib Dems, the hon. Member for Harpenden and Berkhamsted (Victoria Collins), talked about how we navigate the legal future of space. That is an important point, and why we are supporting the space industry by giving an 11% uplift to the UK Space Agency’s 2025-26 budget. I hope that increase shows the direction of travel. Our trade strategy will come out in a couple of weeks. The world of exports is important to our space industry, and we need to ensure that we support advanced manufacturing and space through our trade strategy.
I hope Members are reassured of how important we see the space industry as being. We see it as one of the key growth-driving sectors. The industrial strategy will set out exactly what we are going to do. The hon. Member for Mid Buckinghamshire talked about the risk of losing world-class talent and industry from these shores; he will be an expert in that, as so much of it happened under the previous Government. We are trying to ensure that we attract and keep people here, and build young people’s talents to develop a space industry that we can all be proud of. Watch this space in terms of the industrial strategy; I look forward to coming back and talking about it.
Mark Garnier
I thank all Members who made a contribution to the debate. It has been fantastic to hear from the hon. Members for Strangford (Jim Shannon), for Congleton (Sarah Russell), for St Ives (Andrew George), for Truro and Falmouth (Jayne Kirkham) and for Stockton North (Chris McDonald), as well as the Front-Bench contributions from the hon. Member for Harpenden and Berkhamsted (Victoria Collins) and my hon. Friend the Member for Mid Buckinghamshire (Greg Smith).
It is a great pleasure to see so many different people and so many new MPs contribute to this debate from such diverse parts of the world, rather than just hearing the same old characters talking about the same old stuff—
Mark Garnier
The hon. Gentleman is always here.
A number of important things have come up in this debate, one of which is the importance of the clusters. We have heard talk the north-east cluster and the Cornwall cluster. For me, Cornwall is incredibly important: as the hon. Member for St Ives knows, my spiritual home is in Newlyn. My grandparents were Newlyn school artists, and I was brought up looking across Mount’s bay to Goonhilly downs. We also heard how Jodrell Bank is incredibly important as an inspiration; I remember being inspired by what was going on there as a child back in the 60s.
We can see that there are extraordinary opportunities. Businesses across the whole of the country are involved in the space sector. We are seeing extraordinary things going on in, for example, Northern Ireland, which has a very good aerospace legacy. Queen’s University Belfast is using that legacy in looking at the phased array antennas that are being designed and built to enable space-based solar power. That is an incredibly important and successful piece of work. When we eventually get to the stage in which space-based solar power stations are beaming energy back to Earth, Queen’s University Belfast will have been absolutely instrumental.
I have been heartened by the views of many Members. The clusters are very good, and Members will be pleased to hear that I know all the cluster chiefs, one way or another. In Cornwall, Gail Eastaugh is the pushiest of them all. She is truly dynamic and an absolute advocate for Cornwall. We had a drop-by space event a few months ago to promote the space cluster; people turned up with their little banners, but Gail brought something the size of the Chamber wall in order to promote Cornwall—it was very good.
The hon. Member for Truro and Falmouth made a point about Newquay spaceport, which we must remember was a success. It was not the Newquay spaceport that got it wrong; a fuel filter in a Virgin rocket got it wrong. We must never forget that everything we wanted to do was a brilliant success.
I thank the Minister and the shadow Ministers, my hon. Friend the Member for Mid Buckinghamshire and the hon. Member for Harpenden and Berkhamsted, for their contributions. The sector is very exciting, and I get the sense that people are unified behind all this. We know there is a grand strategy and we want to be dominant in the sector. We might have disagreements or arguments over the tactics to achieve that, but if we share the common vision of a grand strategy, we can get there. It is incredibly important for our economy, our productivity and the future. As a mature economy we need to find ways to be increasingly productive in order to deliver a better quality of life for everybody, and space will absolutely deliver that.
The Minister spoke about the industrial strategy, and in a couple of weeks I will take a forensic look at that. The global space finance summit at the end of the year is so important. We have a lot of important sectors in the UK economy that we take for granted, and those sectors need space as much as space needs those sectors. If we want to continue to be relevant in the financial services sector, we have to be relevant for the most modern type of finance and the most modern types of opportunities. That is why we have to be good at space finance and think carefully about it. I would very much like an invitation to come along and speak at the summit.
I thank everybody who contributed to the debate. I get the sense that there is a strong unity of vision in the room, and this is a fantastic opportunity. As they say, to infinity and beyond!
Question put and agreed to.
Resolved,
That this House has considered the impact of the space industry on the economy.