UK Space Industry

Baroness Winterton of Doncaster Excerpts

Thursday 4th February 2021 Commons Chamber

[David Morris (Morecambe and Lunesdale) (Con) [V]]

May I declare an interest as the chairman of the parliamentary space committee? As I am sure you can appreciate, Madam Deputy Speaker, three minutes is not long enough to go through everything that the space industry has to offer at this moment in time—a lot is going on in the space industry.

The space sector in the UK is a growing sector that has seen a 60% growth in turnover since 2010. The sector employs 42,000 people directly, including 1,500 apprentices. In 2018, it had a turnover of £14 billion, with £5.5 billion of exports. The UK space industry has more than 1,000 companies—these sectors are vital to the UK’s growth—and it generates £79 billion turnover in a year, £46 billion of that in exports supporting over 1 million jobs across the whole of the UK. As you can see, Madam Deputy Speaker, it is a very big industry indeed.

This debate is an opportunity to highlight the Government’s continued interest in the UK space sector and the ambitions to build back better following the covid-19 pandemic. People do not realise that more or less everything in our lives is affected by what goes on in space, from me sitting in my constituency making this speech, all the way through to mobile phones, technology enabling GPS satellites, and even the regulation of gas flows across the UK in certain applications. It is a huge and very complicated industry.

Recently the Government have had a lot of investment in innovation from the UK space sector. We have been at the forefront of global innovation, from sustainable fuels for rocket launchers to the next generation of earth observation. Last month, Rolls-Royce and the UK Space Agency announced that they are joining forces on unique research into how nuclear power technologies could be used to part-power space exploration. Oxfordshire-based Reaction Engines is continuing to develop a SABRE—synergetic air breathing rocket engine—for propelling both high-speed aircraft and spacecraft. Some day in the future, we will be able to fly into space. The Government recently invested £500 million in a low-earth-orbit satellite communication system, and the order books are bulging, with over £2 billion-worth of investment coming in. That shows that the UK is pushing forward on its agendas and objectives for the UK’s space programme. We are definitely a big player in the space industry.

In future, we must still collaborate in the ways that we are doing, enable our terrestrial sites to have ballistic space ports as well as horizontal space tourism airspace, and hopefully give the Space Industry Act 2018 more teeth as regards dealing with the Civil Aviation Authority, which is actually stifling the space industry.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I do want hon. Members to keep an eye on the clock because we are trying to get in as many people as we can.

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[Chris Skidmore (Kingswood) (Con) [V]]

My hon. Friend the Member for Morecambe and Lunesdale (David Morris) is right that three minutes is not a long time to discuss the enormous potential of the UK Space Agency but, then again, it takes only two minutes and 30 seconds for a rocket to leave the earth’s atmosphere, passing the Kármán line, and go into orbit, so Members can do better than that. I am proud to have been the UK’s Space Minister—twice actually—between 2018 and 2020. Not only is it the best job title in Government, but my daughter used to call me the “Minister for the Universe”, confusing that with my other title of Universities Minister.

There are enormous opportunities ahead in the 2020s. As Space Minister I created the idea of the National Space Council, with the promised national space strategy that has been talked about. I also managed to deliver a record uplift in the UK’s contribution to the European Space Agency—nothing to do with the EU—of £1.9 billion a year over the next four years. However, we can and must do more. I am sure that the Minister will recognise that this role is a huge opportunity for her as well.

Space is involved in every aspect of our lives. It is probably involved in this debate today, with satellites passing information back from various constituencies. The economic output for space in the UK is estimated to be £300 billion, rising to £340 billion by 2030. Worryingly, however, only 10% of that activity is actually UK owned. There is a huge issue of sovereignty that we need to tackle when it comes to the UK space industry. Ninety per cent. of our satellite activity is through foreign-owned satellites, so we need to look again at what we can deliver for the future.

As for Government investment in space, yes we are doing well, but we spend roughly £500 million a year, which is a third of the French Government’s budget and half of the German budget. When it comes to a new national space strategy and the future, we need to consider a few things. First, looking at the UK Space Agency, we need to create a separate UK space delivery agency so that the Space Agency is a commissioner that pushes through projects such as horizontal launch down in Newquay. Secondly, we need to double our space budget up to £1 billion a year. We should have a national procurement fund for space worth £250 million a year and a space innovation fund worth £150 million a year. That would ensure that the UK can really be on a par with other European nations and other countries, putting the space industry right at the centre of our vision for a new global Britain.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We have lost the connection to John Nicolson, so we go straight to Richard Graham.

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[Madam Deputy Speaker (Dame Rosie Winterton)]

Due to the pressures on time, Mark Garnier will be the last speaker before the Front Benchers.

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[Amanda Solloway]

I thank my hon. Friend. I know his son Freddie, and wow! That is what we have to do: inspire future generations.

The hon. Member for Edinburgh West (Christine Jardine) talked about Neil Armstrong landing on the moon. I remember that, and I remember thinking how important—how amazing—all these achievements were. Finally, my right hon. Friend the Member for Tunbridge Wells (Greg Clark) talked about how we must plan for our future. I am grateful for all those contributions, which were all valuable.

We must use space every single hour of every single day, and that is what makes it so exciting. From getting the latest weather forecast to navigating the oceans and operating the National Grid, satellites keep our troops safe, underpin every financial transaction and help scientists monitor our climate. Space innovations can and have transformed how we live and work, from automated cars to wearable technology, while space science helps us to understand our place in the universe and protect our future.

As I speak, British satellites are capturing high-resolution images around the globe to help us assess environmental hazards, manage natural resources and understand our climate. British technology is on the way to Mercury—gosh, that is incredible—making possible the European Space Agency’s first mission to study how the planet closest to the sun was formed. That is really amazing.

Satellites have kept our families, communities and businesses connected this past year, while space-powered technologies such as drones have supported the incredible efforts of our NHS, as was acknowledged by the hon. Member for Central Ayrshire (Dr Whitford). That includes enabling my 86-year-old dad in Wales to watch this speech today.

The Government’s partnership with our inspirational space sector has been at the heart of its success. Our space growth partnerships bring together the UK’s space industry, research base and Government to drive our ambitions forward, and will help us build back from the challenges of the pandemic better and stronger than ever.

We have established a new National Space Council to co-ordinate space policy. We will grow our space economy across the Union, bolster our capabilities to protect the UK and our allies, foster innovation, and make the UK a world-class destination for global talent and investment. The UK’s priority for space will be set out in the first comprehensive space strategy, which will be delivered in the next six months. I could not agree more that we need that.

Our free trade agreement with the EU, worth £668 billion, is a vital step, allowing the UK to remain at the forefront of this high-tech industry. It paves the way for the UK to remain in the Copernicus programme, where there will be opportunities for UK businesses to bid for high-value manufacturing work and access satellite data, on which we will build science and commercial applications.

Outside the EU, our £374 million annual investment in the European Space Agency is ensuring that UK scientists and engineers take lead roles in this decade’s most exciting missions, from building Europe’s next Mars Rover to searching for life on other planets and studying the sun in greater detail than ever. We are investing in new international partnerships that will boost UK space exports and strengthen our collaboration on ground-breaking science and research with other leading space nations, such as the US, Australia and Japan.

We are also establishing major new national programmes to build the space capabilities that are vital to our prosperity and security. Our space-based positioning, navigation and timing programme is exploring new ways to ensure continued delivery of satellite navigation and timing services that are critical for UK energy networks and communications in the maritime, aviation and defence sectors, all of which we have heard about throughout this incredible debate.

We plan to make the UK a global hub for space innovation. We have launched a £15 million national space innovation programme, the UK’s first dedicated fund for pioneering space technologies, which will help solve some of the greatest societal challenges. Our strategic investment in the OneWeb satellite communication constellation demonstrates the Government’s ambition to put Britain at the cutting edge of the latest advances in space technology. Access to our own global fleet of satellites has the potential to connect people worldwide, creating jobs and building on a strong advanced manufacturing service base. Our aim is to be the first country in Europe to launch small satellites.

We have kickstarted work to build the first UK spaceports, including in Scotland, supported by grants worth £40 million. We expect the first launches from 2022, creating hundreds of secure, highly skilled jobs. To ensure that the UK’s launch offer is competitive and encourages new market entrants, the UK Government are putting in place a world-leading regulatory framework, with the Civil Aviation Authority assuming responsibility for the regulatory functions of the Space Industry Act, in addition to regulating orbital activities under the Outer Space Act 1986.

We are working with our partners in Wales, Scotland and Northern Ireland to build their local strengths and drive development of their sectors. Government initiatives will join and complement our existing areas of strength as part of our developing national space ecosystem, unlocking new talent and making a career in space a realistic prospect in every part of the country.

We have a truly vibrant space sector, which stretches across the nation, going further to ensure that our space industry benefits from every region. We must seize this moment and deliver.

Question put and agreed to.

Resolved,

That this House has considered the future of the UK space industry.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We will have a two-minute suspension to make the necessary arrangements for the next business.