Space Industry (Indemnities) Bill

James Naish Excerpts

Friday 7th March 2025 Commons Chamber

[Alex Ballinger (Halesowen) (Lab)]

I congratulate my hon. Friend the Member for Glasgow East (John Grady) on introducing this important debate. The two-word change might be the most consequential change ever made in Parliament. I am pleased to support the Bill.

Today marks the commencement of British Science Week, a celebration of science, technology, engineering and mathematics. This year’s theme, “Change and adapt”, is particularly fitting—it feels almost as if the stars have aligned—because we are debating the space industry today, which is built on technology, engineering and mathematics. The Bill perfectly aligns with the theme of British Science Week, as it seeks to implement small but significant changes to adapt the space industry in the UK and make it fit for the future.

As many other Members have explained, the space sector is an incredibly valuable industry for the UK economy, and one that we should all take pride in. The UK has long been committed to boosting commercial industry, with over 1,500 space companies on our shores. The UK leads in start-up and scale-up investment, second globally only to the United States. That is a huge achievement and a real opportunity that we must continue to nurture.

A consultation undertaken by the previous Government showed that operators holding unlimited liabilities often viewed that as a barrier to conducting spaceflight activities from the UK. The same consultation confirmed that other launching nations limit liabilities or provide a state guarantee for spaceflight activities conducted from their territory. This reality does not give investors a firm footing when looking towards the UK as a place to invest. If we are truly serious about fostering growth across the length and breadth of our country, the space sector must play an incredibly important role. The Bill ensures that companies and investors are confident about the UK as a space in which to invest.

People in Halesowen may question what this means for them, as our small part of the west midlands does not have the largest space industry, but we all benefit from the services born of the space sector. Satellite technology, which I mentioned just now, is made possible by the space industry and enables us to buy our morning coffees with contactless payments. Satellites assist with navigation and, importantly, many of them support our defence and national security, keeping us all safe.

The Ministry of Defence has been a major player in this field for some time, investing £6.5 billion over the past decade, including £5 billion for satellite communications through Skynet, and £1.5 billion through the defence space portfolio. The defence space strategy sets out our focus on intelligence, surveillance and satellite communications. I know that colleagues from across the Chamber will welcome that approach, as do industry and allies alike. The additional £1.5 billion of investment through the defence space portfolio brings significant investment to space research and development, and the jobs, skills and expertise that go with it. Through that investment, we are ensuring not only that we meet the threats of the future, but that we help to build the capability, expertise, skills and jobs that will serve defence and the wider civil space programme. Any efforts to expand on that are therefore wholly welcome.

Investment in space is much more than that, however. I know that for many of the Members in the Chamber, particularly those of us with a keen interest in “Star Trek”, the prospect of sending rockets into the sky is an exciting one. At its core, investment in the space industry is about so much more: unlocking the economy and allowing significant economic growth.

[James Naish (Rushcliffe) (Lab)]

My hon. Friend talked about how Halesowen might not benefit hugely from the space industry, but the Government are developing our industrial strategy right now, and space should be right at the heart of it because of what it could bring Halesowen and similar towns and cities across the country. Does he agree?

[Alex Ballinger]

I welcome the UK’s industrial strategy, particularly the defence industrial strategy. Many businesses in Halesowen, such as Somers Forge, work in the UK defence sector—primarily the Navy—given our engineering expertise in a heavily industrial part of the country, but there are opportunities for lots of businesses across the country to get involved in the space sector. This small change will unlock a lot of investment that could be used in many different places.

There are other reasons to support the sector. If our goal is to eliminate the obstacles that hinder new businesses from establishing themselves in the UK, these two small words will help to make that change. In doing so, we aim to create an environment in which companies are encouraged to set up operations here, rather than relocating to other countries. We must focus on retaining jobs and ensuring that the employment opportunities of the future are available right here in the UK. Additionally, fostering a thriving business ecosystem will not only boost our economy but drive innovation and technological advancements. By supporting the sector, we can create a sustainable and prosperous future for our nation, attract global talent and investment across science, technology, and research and development, and contribute to the Government’s core mission of growth.

Once again, I congratulate my hon. Friend the Member for Glasgow East on his Bill. It is a significant step towards ensuring that the UK remains at the forefront of the space industry, driving economic growth and innovation for years to come, and a clear signal to the world that the UK is open for business, ready to lead in the space industry and dedicated to creating a thriving environment for growth and development. By supporting the Bill, we are investing in not only the space industry, but the future of our country, ensuring that we remain competitive on the global stage and continue to attract the best and brightest minds to our shores.

[James Naish (Rushcliffe) (Lab)]

It is an honour to rise today to speak on the Space Industry (Indemnities) Bill and to champion the vital opportunities the space sector provides, especially to constituencies in Scotland, but also across the whole of our country, and to my area of Nottinghamshire in particular. I congratulate my hon. Friend the Member for Glasgow East (John Grady) on introducing the Bill and commend him for talking for 30 minutes, given that he is changing only two words of legislation.

I begin by echoing my colleagues’ sentiments about the transformative potential of our country’s space industry. The industry is already worth £17.5 billion to our economy, employing 50,000 people across the nation. It is quite literally a sector with no limits, and the Bill represents a crucial step in ensuring that we remain a global leader in space exploration, satellite technology and aerospace innovation. I have already mentioned the UK’s modern industrial strategy, which this Government are developing, and I genuinely hope that space sits at the heart of it.

In Rushcliffe and across Nottinghamshire we are witnessing the profound impact of this growing sector, and I am immensely proud to highlight some of the exciting developments that are taking place in our region. Just a short journey from my constituency is the Sherwood observatory, in Sutton-in-Ashfield, which is currently undergoing a £6.8 million transformation, and will soon open a state-of-the-art planetarium and science discovery centre, providing an unparalleled gateway to the stars for local students and visitors alike. What makes this project particularly remarkable is its innovative use of a Victorian water reservoir, blending historical preservation with cutting-edge science education.

Funded by the national lottery, the towns funds and private donations, the planetarium will inspire countless young minds, encouraging the next generation of scientists, engineers and, hopefully, some astronauts. The planetarium is set to generate a host of economic opportunities for Nottinghamshire, attracting visitors from across the UK, bolstering local tourism and supporting businesses in the area. Of course, it also underscores a commitment to making science accessible to all, regardless of background or geography.

Closer to Rushcliffe, we have the University of Nottingham’s Institute for Aerospace Technology, a shining example of our region’s commitment to excellence in research and innovation. The IAT is at the forefront of aerospace and space research, working with leading global companies to develop technologies that will define the future of space exploration. I am also proud to note that the university ranks among the top institutions in the UK for aeronautical and aerospace engineering, securing seventh place in the UK “Complete University Guide” for 2025. This ranking is a testament to the exceptional work being done to prepare students for careers in the aerospace sector and develop groundbreaking technologies that will propel our nation to new heights, both figuratively and literally.

The Nottinghamshire space sector is about not just innovation, but inclusion and opportunity. The industry offers young people in our region the chance to pursue exciting, well-paid careers without needing to leave their communities.

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

The space sector offers opportunities to all our constituents. The defence industrial strategy is an opportunity to create and support activities based in STEM—science, technology, engineering and mathematics—particularly in relation to space. Does my hon. Friend agree that my industrial strategy submission would be a worthy read for all Members today, as it highlights just that?

[James Naish]

I obviously have not read my hon. Friend’s submission, but if he wants to send it to me I would very much welcome reading it.

The supply chain of the space sector is vast and diverse, as my hon. Friend has just alluded to, with almost 2,900 suppliers nationwide, half of which are small and medium-sized enterprises. By supporting this Bill and ensuring that the space industry can flourish in the UK, we are supporting businesses in Nottinghamshire and beyond that employ local people, contribute to the local economy and strengthen our communities. By virtue of even discussing the space industry here today, we are sending a clear message that the UK is a competitive and supportive environment for space businesses. This is about not just fostering innovation, but ensuring jobs and investment today and ensuring that expertise remains here in the UK, benefiting constituencies such as mine. Nottinghamshire is proudly playing its part; from Sherwood observatory’s planetarium to the University of Nottingham’s aerospace research, our region is a shining example of the transformative power of the space sector.

This Bill is an essential piece of legislation, as it addresses the current requirement for unlimited liability in cases of damages involving UK-owned satellites, which has inadvertently driven operators away from the UK to other countries with more favourable terms. By supporting the industry today, we are not just enabling launches into orbit, but launching a brighter future for young people, our economy and the UK as a whole. Collectively as a House, I hope that we will seize this opportunity to lead the world in space innovation while ensuring that the benefits of this industry are felt in every corner of the country.