Space Industry (Indemnities) Bill

Adam Jogee Excerpts

Friday 4th July 2025 Commons Chamber

[Mike Reader (Northampton South) (Lab)]

I thank my hon. Friend the Member for Glasgow East (John Grady) for bringing forward this important Bill. It is fantastic to see space made in today’s programme to debate it. Many of the contributions have been out of this world. [Interruption.] I am sorry, Madam Deputy Speaker.

The Bill is a timely and necessary measure to sharpen the UK’s competitive edge in what is undoubtedly one of the most strategically important domains of our time. Having almost completed my first year on the armed forces parliamentary scheme, I have seen at first hand that our security relies not only on land, sea and air, but increasingly on the space domain and our assets in orbit. Satellite communications, Earth observation and precise navigation form the backbone of military operations, but also of our civil economy—I will come back to that later.

As my hon. Friend the Member for Crawley (Peter Lamb) pointed out in his intervention, any disruption up there has immediate and profound consequences to operations down here. We know at first hand that China and other nations are taking leaps and bounds in its drive to dominate the space domain, so anything we can do to strengthen the UK space economy is critical.

Before coming to this House, I was very fortunate that my team supported clients such as Defence Equipment & Support in negotiations around the space domain, in particular providing better commercial and buying support, which is critical, so I have seen at first hand the complexity of this emerging market, and how the public sector needs to keep up to date and respond to the demands and the asks of the private sector, and drive growth.

Just down the road from me in Harwell, a project completed by my former firm in 2023, the National Satellite Test Facility, received £120 million of new investment by the public sector through the Science and Facilities Technology Council. That shows that when we unlock investment, it is not just about the assets that end up in space, but about the big, chunky, complex engineering construction opportunities that are opened up in places such as the OxCam corridor, where my constituency sits. Through that work, I have seen how the private sector is poised and hungry to drive forward the next wave of space innovation. What is holding us back, generally, is not technology, talent, innovation or the drive for growth, but regulatory uncertainty. Despite the fact that the Bill relates to only four words, as my hon. Friend the Member for Glasgow East said, it will make a big difference.

The Space Industry Act 2018 laid the groundwork for the modern commercial sector we have in space. I commend the previous Government, as we are debating in a spirit of collaboration and co-operation across the House, for their work on that and for the space industrial strategy, which was published later. I can see echoes of that now in the industrial strategy, and I know that when the defence industrial strategy comes out later in the year, space will be front and centre of that as well. It is positive that we can build on some of the good work done by the Conservatives.

Without knowing what financial exposure firms might face if an accident or an incident occurs, companies hesitate to invest, insurers demand eye-watering premiums, and ultimately, we lose manufacturing contracts to other jurisdictions. The simple but powerful adjustment made by the Bill changes the law so that the indemnity limit for each operator licence is not optional, but mandatory. Each licence must spell out the licensee’s maximum liabilities. This is an essential risk management mechanism and it means that companies know exactly what they are signing up for. It also allows them to secure insurance in a predictable way. In the construction sector, we had a lot of unpredictable insurance post-Grenfell and particularly post-industrial shock, so I know how, for a commercial business, insecure insurance and unpredictability of insurance is important.

The Government’s new industrial strategy is really positive for the space sector. In my constituency, the Bill will stimulate jobs and growth. It specifically recognises that the Government will be investing in research and development for the space industry through the Cambridge Growth Company, which will drive new opportunities for my constituents.

When we consider this issue, we must also remember the wider stakes.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

I am enjoying my hon. Friend’s speech on space. I must declare that I prefer to have my feet firmly on planet Earth, but none the less I am enjoying his contribution. I have been advised that men are from Mars and women are from Venus. Where does my hon. Friend think those on the second Opposition Bench are from?

[Mike Reader]

I am sure they are working hard in their constituencies right now.

[Adam Jogee]

Where they are from, not where they are.

[Mike Reader]

Where they are from, I do not know, but I am sure they are working hard in their constituencies right now. I will keep the collegiate relationship we have here today, but I thank my hon. Friend for that comment.

I was talking about international impacts. As the chair of the all-party parliamentary group on international trade and investment, I think the Bill is a very positive step forward to help drive investment. As we see countries such as the US, Luxembourg, Australia and Japan change their regulatory regimes, we need to keep that front and centre.

I did say I would briefly mention the civil economy, as we have a Minister from the Department here today. Regulatory certainty matters. I see that the Sustainable Aviation Fuel Bill is coming forward, but I note that the fuel strategy is also very important. One in five of my constituents work in logistics, so it is critical that we see certainty in all sectors of the Department for Transport.

I will conclude by saying this. Space is no longer the preserve of big Government agencies alone. We see a lot of innovation. As my hon. Friend the Member for Portsmouth North (Amanda Martin) said in relation to her constituency, there is fierce commercial competition and a lot of opportunity. The Bill will ensure that, whether we are exploring near space, planets, exoplanets, exomoons or even going out further into space, we support the British economy and get the space industry growing.