The Space Economy (UK Engagement with Space Committee Report)

Baroness Ashton of Upholland Excerpts

Thursday 9th July 2026 Lords Chamber

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[Baroness Ashton of Upholland]

That this House takes note of the Report from the UK Engagement with Space Committee The Space Economy: Act Now or Lose Out (HL Paper 190, Session 2024–26).

[Baroness Ashton of Upholland (Lab)]

My Lords, it is with great pride that I introduce this debate on the report The Space Economy: Act Now or Lose Out. The title was chosen to capture the urgency with which the committee believes government and others should act. I am sure this overarching message will be reinforced in the course of this debate. At the outset, I thank my noble friend the Minister for her willingness to engage with the report and the debate. I believe she is enthusiastic for what can be done. I look forward to hearing that enthusiasm turned into concrete actions in her response and in the future.

I begin my remarks by paying tribute to the noble Lord, Lord Cromwell, who is not in his place but who was the instigator of this inquiry. I am very grateful to him for proposing and championing that your Lordships needed to consider our relationship to and work in space. The committee was fortunate to have such a brilliant team of clerks and advisers, who made this report come alive. It astonishes me how they were able to guide us through such a challenging subject, keeping us within the framework of a report based on evidence but never curbing our enthusiasm for the subject, and apparently becoming experts on the subjects within days of being given the task of supporting our work. Sabrina, Steph, Scott—you are truly fantastic. Sarah, thank you for your work in communications. Michelle, we could not have asked for a better external adviser. On behalf of the committee, thank you.

Most of all, I pay tribute to the noble Lords who formed themselves into the space committee with a fabulous combination of enthusiasm and curiosity. I have performed many functions in your Lordships’ House but never chaired a committee before, and my colleagues were a joy to work alongside. We even had a space baby during one of our public sessions: my noble friend Lord Stansgate, who brought his wealth of experience in science and will do so again today, was momentarily distracted by the news of his new baby granddaughter’s arrival. It added to the urgency we felt that this subject, with all its potential, could offer her a better future. Perhaps inspired by the new family member, my noble friend made the point that space would be an integral part of the lives of her generation.

The noble Lord, Lord Clement-Jones, chaired in my occasional absence, for which I am extremely grateful, bringing his legal knowledge as well as enthusiasm, especially in tackling some of the environmental questions. On our visit to the Harwell space cluster in Oxfordshire, which has over a 100 space businesses, the European space agency and the UK space agency, before it was folded into the department—I pay tribute to the noble Lord, Lord Willetts, for his role in that—a business leader said to us there that he had many visits where people barely asked a question and feared that we might not have much to say. We were impossible to stop—some of us more impossible than others—barely catching the train back and still with lots to say. My award for enthusiastic questioning goes to my noble friend Lord Shamash, who brought not only his legal prowess but his unstoppability and interest, which delighted the businesses we met. I am only sad that we were unable to hold this debate before the noble Lord, Lord St John of Bletso, left the House. He had hoped to make his farewell speech on this report. On behalf of the committee, I send him all our good wishes.

In our lifetimes, space has moved from the almost science fiction launch of Sputnik and the early pioneers of Mercury and Gemini through to the developments of Saturn V and the heady days of the Apollo missions. Many, though not all of the committee, remembered the anticipation of Apollo 11’s grainy photographs from the surface of the moon and the crisis of Apollo 13—still my favourite film. We have witnessed the building of the International Space Station, the Soyuz missions, the work and the tragedies of the space shuttle, and seen a largely two-country race and collaboration transform to a time when 90 countries have space programmes and China has its own space station in orbit. Indeed, the world has not seriously worked together on how to regulate space since the 1967 outer space treaty.

Ten years ago, there were 2,000 satellites; by 2030, we will have a minimum of 60,000 and a possibility of 100,000. We have seen our relationship with space change our everyday lives in ways that barely seemed possible only a few years ago. Most of the time we are unaware of our reliance on what happens above us. Some 18% of our GDP is reliant on satellites, and were we to lose our PNT—positional, navigation and timing capabilities—for just one week it would cost our economy £7 billion.

We had the benefit, in putting together this report, of an extraordinary group of witnesses and teachers. We held 24 evidence sessions, received 106 written submissions and heard from 62 witnesses. We had masterclasses from astronauts Chris Hadfield and Tim Peake on their experiences past and present. Future astronaut John McFall gave us insights into his ambitions for his time in space. Professor Brian Cox aided us immensely, even interviewing me at the conclusion of our report to give greater publicity to our work. Of the businesses we met, I should single out ClearSpace, which braved the security needs of your Lordships’ House to bring in its robotic arm, which is designed to catch satellites in orbit to service, repair or remove them. Experts in law, regulation and climate issues all gave us the benefit of their knowledge. We heard from many of the over 60 UK universities engaged in space research, discovered that there were 84 observatories engaged in space work and recognised that this sector has grown much faster than the rest of the economy over a number of years. We spend 1% of the global space budget and get a 5% share of the market, in a global space economy anticipated to grow 60% by 2030 and predicted to be worth £1.8 trillion by 2035.

We took the decision to focus primarily on the economic benefits, the challenges of promoting space safety—especially as there are more than 40,000 tracked pieces of space debris in orbit and almost 1 million smaller pieces capable of damaging satellites due to the velocity of their travel—and the partnerships that allow us to scale up our engagement. We were mindful that 50% of expenditure on space comes from the Ministry of Defence, that there are many dual-purpose technologies and that, in the context of resilience, satellite services are critical infrastructure. I am very grateful for the advice of Major General Tedman, head of United Kingdom Space Command.

Had we had longer we would have delved into these areas more, but, with the defence review and the committee currently examining issues of resilience, we are confident that some of these vital issues will be or have been examined. We hope that the Government will put all these reports together in thinking about next steps. The noble Lord, Lord Lansley, paid particular attention to our links with defence. I look forward to his contribution today, which I am sure will feature this.

We were most surprised—I believe colleagues will comment on this—by just how fast work in space has become part of our infrastructure and the landscape for much of our economy. Satellites enable more precision farming, as anyone watching “Clarkson’s Farm” will note. GPS allows autosteer systems to guide tractors with extreme precision, minimising overlaps, saving fuel and reducing crop damage. Weather satellites help farmers to plan, which is vital not just in the UK but especially in areas suffering from the extremes of climate change and disruption. Financial investors can also assess crop health, estimate yields and so on using satellite technology where information is scarce.

Shipping companies use navigation satellites to track on their phones the locations of not just vessels but their contents. Most of us use GPS to work out our travel routes, avoiding traffic jams and disruptions. Online banking uses satellites for internet connectivity and, in remote or rural areas, provides connections to log into a bank. In the medical field, we heard from witnesses such as BioOrbit about the potential to manufacture drugs that work more effectively with fewer side-effects and allowing patients to administer complex drugs safely at home. Others spoke about the advantages of growing skin and organs in microgravity. This Tuesday, a British start-up, Mass Balance, announced that it is sending a miniature autonomous orbital lab to space to help develop new dementia drugs by watching how the complex proteins that cause Alzheimer’s fold and clump in microgravity.

One of the most exciting areas we heard about was how the UK is an early mover in orbital servicing, assembly and manufacturing. Companies such as Astroscale and ClearSpace are developing technologies to clean up space debris and service satellites in orbit. Space Forge is developing fully returnable satellites designed to manufacture the next generation of higher-performance semiconductors, which will make such things as vehicle chargers and 5G networks significantly more efficient. With the cost of launch becoming significantly reduced, largely due to reusable rockets, the potential to do more in space increases.

This brings us on to the geographical advantage that we have in launch capabilities, as an island where rockets can avoid populated land and access polar orbits. SaxaVord spaceport in Shetland has announced a launch window for a possible rocket test flight in August or September, with German firm RFA expected to be the first to carry out tests this year. I am sure that the noble Baroness, Lady Mobarik, will have more to say on this subject, but the committee was mindful of the need to ensure a really good business case for the launch site. We are well aware that we must not miss opportunities and we heard evidence of the need to have our own capacity to launch, but we are keen to hear how the Government see the future for a commercially successful launch capability and whether a spaceport capability offered to international clients has the potential to be useful for this country commercially.

The Royal Society has said:

“Space technologies will become ever more integral and fundamental to … modern economies”.


That requires government departments to build the value and use of space into their forward thinking for all sectors. We have heard the same cri de coeur for decades about how to make government join up its thinking, and I know that the noble Lord, Lord Tarassenko, will offer his insights into higher education and the need to support R&D and thinking across government. We have made proposals for a Space Minister dedicated solely to this work and an envoy to work alongside businesses and universities and feed into government.

It is crucial that we address the needs of start-ups to grow up. It is not confined to this area and often spoken of as a British malaise: great at invention, then bought up by others. We heard how companies are approached all the time to move to the USA, the Gulf or elsewhere. We are lucky that some are firmly committed to this country, but they can stay only if they can access the resources that they need, so I hope the Minister will tell us what more can be done.

Many businesses talked about the importance of moving from grants to contracts and what a difference that would make. Can the Government do this and at speed? Having certainty in contracts, plus the ability to leverage other investment more effectively as a consequence, was a big part of the ask that many felt would make a difference. As the noble Lord, Lord Booth-Smith, who is on the committee, pointed out, private sector investment needs to be improved. A strategy to promote investment and opportunities should be part of the Government’s efforts to boost economic growth in this area.

Businesses spoke too about the challenges of skill shortages—up to 95% in some cases. This is not just about scientific knowledge and innovation. For a successful business, all kinds of skills are needed. As we were reminded by the noble Baroness, Lady Bonham-Carter, who cannot be here today, this is about STEAM, not just STEM. Arts and humanities play their part too. Opportunities and education play a key part, as my noble friend Lady Donaghy, with her long experience in the world of work, reminded us. No doubt she will again today.

At a time when the Milburn report speaks so passionately and alarmingly about our young people—called NEETs for shorthand purposes—surely we can invest in job training in this area. Space sparks the imagination but requires practical skills to make the imagined real. A campaign to engage some of these 1 million young people should surely be considered. How exciting this could be for those who, one way or another, have had few opportunities or not been seized of the possibilities.

There is intense competition in this field. Those who succeed will be those who develop strong national strategies that align government and industry around national advantages and shared goals, and who understand the rapid changes needed to harness this new future. The noble Baroness, Lady Stowell, with her deep understanding of AI and her knowledge of the need to move on these major challenges at speed, will have much to offer our debate. We have the opportunity across the country, with our space clusters, space catapult, primes, small businesses, universities and institutions, to boost our economy significantly. Not everything that we should do we should do alone. Our role in the European Space Agency is key and our partnerships with NASA, Japan, Canada and Australia are all important. I look forward to hearing more about what is being proposed.

Here are real opportunities for economic growth in new industries, offering new products in regulation and legal services, testing and building satellites, engineering in space, new medicines, offering farmers greater crop yields, shipping and shopping, or simply getting safely from one place to another. Every government department should be involved in working out what we should do. This is as important for determining our future as the Industrial Revolution was in the 18th and 19th centuries. We stand on the cusp of something remarkable: space is the enabler for the way we will live. Whether we rise to the challenge, invest in this potential and take the best kind of risks is up to this Government in this moment. Now is the time to seize that moment: in other words, act now or lose out. I beg to move.

--- Later in debate ---

[Baroness Lloyd of Effra (Lab)]

I set out earlier this year, in a speech to the Space-Comm Expo, a number of elements that are important for taking forward the measures envisaged in the space strategy, which include the £500 million of funding. We have taken action in many other areas set out in that report, since it was published and since our response to it. The noble Lord is right: we wish to bring it all together, and we are working to do so. Unfortunately, we will not be able to publish it before the Summer Recess. We hope to do so as soon as possible after that.

[Baroness Ashton of Upholland (Lab)]

My Lords, I thank all noble Lords who participated in this debate and my noble friend the Minister for her response. It is clear from everything that has been said that we have real opportunities in economic growth, world leadership and resolving problems, both in space and on earth. It is also clear that we need to get on with it.

Motion agreed.