Space Industry (Indemnities) Bill

Debate between James Naish and Alex Ballinger

2nd reading
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.