Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the impact of withdrawing funding for Orbex on the UK's satellite launch capabilities and employment in the aerospace sector.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.
The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.
While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government for what reason they withdrew funding to Orbex to develop a UK-based satellite delivery system.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.
The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.
While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what funding options they considered when evaluating whether to withdraw funding for Orbex.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.
The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.
While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government whether a UK-made rocket being launched from a licensed UK spaceport in 2026 is still a priority for the Government.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government’s priority is to secure assured access to space for the United Kingdom.
The Government is supporting the development of an operational UK spaceport and a competitive launch market. SaxaVord Spaceport in Shetland is Europe’s first licensed vertical launch site and is expecting multiple launches in 2026.
We will work with launch companies that can meet our assured access objectives to develop reliable, secure, and commercially competitive access to space. We will also develop and strengthen existing partnerships with our NATO and European allies.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government whether they commissioned an audit of Orbex; if so, whether they will publish the results of that audit; and whether the Government provided support to Orbex to enable its Prime rocket to be launched from spaceports in the United Kingdom.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
As with all Government investments, appropriate financial, technical and legal due diligence was undertaken before funding decisions were made. The Government does not routinely publish internal assurance or due diligence material, which is commercially sensitive.
The Government provided financial support to Orbex through a combination of direct investment and grant funding to support the development of its Prime launch vehicle.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government whether British companies able to clean up debris from obsolete satellites in space are able to compete for UK Government grants.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The government has supported British companies to develop capabilities to clean up debris through both grants and contracts, including Astroscale UK, ClearSpace UK and respective subcontractors. The procurement process for a single supplier to deliver a research and development contract to remove two defunct UK satellites from orbit is ongoing. Protecting the outer space environment is a priority for the government, so further funding opportunities for British companies to compete for grants will become available in due course.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government whether the UK Space Agency's brief to support the UK space industry will change after it has been absorbed into the Department for Science, Innovation and Technology.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
From April 1st 2026, the key responsibilities of the UK Space Agency will continue to include growing the UK’s space sector, working closely with industry and driving successes and opportunities.
This will be a key element of the overarching remit of the UK Space Agency to: Set the national direction on space including cohering policy, strategy and delivery across the whole of government, leading delivery of innovation and world class science programmes in partnership with the sector and international partners.