The Space Economy (UK Engagement with Space Committee Report)

Lord Shamash Excerpts

Thursday 9th July 2026 Lords Chamber

[Lord Shamash (Lab)]

My Lords, by the time you get to your feet and nine people have already spoken, an awful lot of things that you would want to say have already been covered. I repeat again that it was a delight and fun to be on the committee, which was charmingly chaired, and I thank the clerks. Seeing the committee’s members all present together is a bit like getting the band back together. There is a case for reconstituting ourselves—I do not know whether that is remotely possible, but it is something I raise.

As has been said, the subtitle of the committee’s report is “Act Now or Lose Out”, and nothing could be more accurate. It is important that the Government take on board the extremely rapid growth that is happening on the world stage in relation to space development. We have world-leading experience and expertise, along with a commitment across our science sector and our academic sector. However, we must do everything we can to maximise and apply those skills to see that the sector grows.

It is said that the global space sector is currently valued at over $500 billion and is expected to grow significantly, at an average of about 7% to 8% a year. That is an enormous rate of growth. As a nation, we cannot miss out on this opportunity. The Government have made it clear that they are committed to economic growth. Space is an ideal sector to promote, and it provides huge scope for such growth.

However, I am very concerned, as I note from the recent Defence Investment Plan, published last week and touched upon by my noble friend Lord Stansgate, that although space is a critical national infrastructure sector, the figure set out in that defence plan is only £3.2 billion. True, there is a suggestion that this figure may be increased in coming years, but we must act now. If you think of what is happening in the global space financial environment, that is a comparatively small sum.

What steps can be taken for members of the special inquiry committee to meet with my noble friend the Minister, and the relevant Minister in the other place, as soon as possible to further discuss the options for the future and how best to progress this? As has been mentioned, it is a pity that the House is not as full as one would like. I hope that the Minister will give some thought to either reconstituting our committee, or to whether there is something that could be done regarding a meeting across the ministerial complex on how we could take things further.

The US and Elon Musk, via his SpaceX and Starlink, have 7,000 active satellites, while China has 1,200. The UK has 630 to 670 satellites, and these are mainly small and suborbital. The Ministry of Defence has but six. The rest are commercially owned to facilitate our broadband links and our positioning, navigation and timing system, or PNT.

I would like to see the UK take advantage of the fact that we are not space-locked, which is a policy and practical term— mentioned earlier, I think, by the noble Lord, Lord Lansley—to emphasise the strategic importance of having reliable sovereign access to space. As such, we should expand our two main launch sites at SaxaVord in Shetland for vertical launches, and in Cornwall for horizontal launches. We need to be able to launch our own orbital satellites. We have yet to do so. However, this very morning on the “Today” programme—maybe many of your Lordships heard it—the Shetland Space Centre announced a test launch this August. That is the future and must be encouraged. The noble Baroness, Lady Mobarik, and I were rather regretful that we could not find an excuse to persuade the committee to go up to SaxaVord and have a look round. That would have been interesting. I blame the chairman for that, but what can you do?

It is undoubtedly the case that space has an insatiable demand for funding. Money is tight, we all know that—very tight—but I respectfully suggest that a more collaborative approach be adopted by furthering our partnership with the European Space Agency and reaching out to private capital alongside public funds. It must be a sensible way forward to ensure that we as a nation do not miss out on this rapidly expanding area. It will provide huge numbers of jobs and wonderful opportunities for the nation as a whole. I hope that the Minister, having considered what I have said, will agree with me.