Space Industry (Indemnities) Bill

Baroness Mobarik Excerpts

Friday 5th September 2025 Lords Chamber

[Baroness Mobarik (Con)]

My Lords, I commend the noble Baroness, Lady Anelay, and the honourable John Grady in the other place for introducing this Private Member’s Bill. I welcome the Bill, which is short in text but highly significant in impact. It addresses a crucial point of clarity; by changing one word from “may” to “must”, it makes certain that every spaceflight operator licence, including those for launch activities, will include a liability cap. This seemingly small adjustment is fundamental because, without legal certainty over liability, insurers are reluctant and investors hold back. By guaranteeing a clear liability framework, we send a strong signal that the UK is open for business in the space sector.

Under international space law, particularly the outer space treaty and the liability convention, the United Kingdom is ultimately responsible for damage caused by space objects launched under its jurisdiction. The Space Industry Act 2018 gave us the framework to license launches but left indemnity caps to the discretion of the regulator. This Bill removes that uncertainty and brings us in line with other leading spacefaring nations that already provide operators with capped liability.

For the UK to complete globally, our framework must be both robust and commercially attractive. The UK space sector is already thriving, contributing nearly £19 billion to our economy and supporting tens of thousands of highly skilled jobs.

I wish to make a few remarks about Scotland, which plays a leading role, with Glasgow building more small satellites than any other city in Europe and Scotland accounting for almost 18% of UK space jobs. The noble Viscount, Lord Stansgate, pre-empted that the word “Sutherland” may be mentioned—he was right. For the highlands, Space Hub Sutherland, on the A’ Mhòine peninsula, illustrates the opportunity for regional regeneration. The project has planning consent, with a limited number of launches per year for vertical launch to polar and sun synchronous orbits, ideal for earth observation and climate services. Although development is currently on hold, the site remains a strategic option with strong community involvement. When investors assess whether to restart or scale projects such as Sutherland, they look first for regulator certainty, and this Bill provides it.

Alongside Sutherland, the UK is building out a broader launch ecosystem in Scotland. SaxaVord in the Shetlands now holds the UK’s licence for a vertical spaceport and range operation, with launch operator licences granted and first missions preparing. However, we should think in terms not of a single site but of a plurality of sides, of national capability, launch, in-orbit operations and downstream data, so that the whole of Scotland, from Glasgow to the north—and indeed beyond, to Cornwall and across the UK—can share in the opportunity.

Legislation is not the only factor, but it is foundational. The Bill will put a mandatory cap into every operator licence, ending uncertainty. It will support our space insurance regime so that cover is available and affordable, and signal to global investors that the UK intends to be a stable, bankable place to build rockets, spaceports, satellites and the businesses that follow.

This is a practical, pro-investment measure. It strengthens our competitiveness, supports high-value jobs from Glasgow to the highlands and across the UK, and underpins a sector vital to our economy and security. I am pleased to support the Bill.