Taking place by April 2026, the new unit will keep the UK Space Agency name and brand and will be staffed by experts from both organisations.
In a statement, space minister Sir Chris Bryant said: “You don’t need to be a rocket scientist to see the importance of space to the British economy. This is a sector that pulls investment into the UK and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites. The aims for growth and security at the heart of our Plan for Change can’t be met without a vibrant space sector.
“Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector.”
Today (August 20, 2025) also sees the publication of over 60 recommendations from industry figures on how to improve regulation for space missions, including Rendezvous and Proximity Operations (RPO) where spacecraft work together in orbit and are key to unlocking a future market worth £2.7bn by 2031.
DSIT believes that with the right support, UK space firms could capture a quarter of the global market for in-orbit servicing, assembly and manufacturing. This would help to clean up space, extend the life of satellites, and build new infrastructure above Earth.
UK Space Agency CEO Dr Paul Bate said: “Having a single unit with a golden thread through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality.
“In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability.
“We will continue to deliver, while reducing duplication and ensuring we work even more closely with ministers to support the UK space sector, and the country.”
The UK Space Agency was founded in 2010 and currently operates as an executive agency of DSIT. In 2024/25 it catalysed investment and revenue of at least £2.2bn for the UK space sector.
Commenting, Mark Boggett, CEO of Seraphim Space, said: “The government’s recognition of the space sector as a pivotal driver of UK economic growth, critical infrastructure, and national resilience underscores its strategic importance.
“Bringing space in-house aligns the sector with senior government priorities, broadens the scope of the Industrial Strategy, and creates coherence across the multiple departments being transformed by innovation in the space sector, from the Ministry of Defence to the Department for Science, Innovation and Technology.”