25 June 2025 News

UK government unveils industrial strategy

Space business leaders have hailed the UK’s just announced Modern Industrial Strategy as a game changer for the country’s thriving space industry.

As UK Space Conference (UKSC) prepares to convene on 16-17 July in Manchester, space business leaders have voiced broad support for the government’s new industrial strategy.

The Industrial Strategy names space as a ‘frontier’ industry alongside 10 others “where investment supports both economic growth and security”. The space sector sits across two of the detailed sector plans, ‘Advanced Manufacturing’ and ‘Digital and Technologies’.

On this basis, UK space businesses now sit squarely in two flagship sector programmes, potentially opening a broader pool of innovation grants, facilities and cluster support.

Next month’s UKSC will be the first chance for space sector leaders to convene and discuss the announcement’s implications for the industry.

“It marks a major step forward for the space sector, particularly for In-Orbit Servicing, Assembly, and Manufacturing (ISAM),” said Nick Shave, Managing Director of Astroscale UK.

“With the Advanced Manufacturing Sector Plan, it creates a more supportive environment for high-assurance innovation, underpinned by commitments to R&D, infrastructure and skills.”

He said it was likely to make this year’s UKSC more focused on both practical delivery and strategic collaboration.

“With space identified as a key growth sector linked to advanced manufacturing and national resilience, discussions will shift from exploring potential to shaping concrete plans around infrastructure, supply chain security and export opportunities,” Shave added.

The new plan was welcomed by Airbus, one of the country’s biggest space manufacturers. A company spokesperson said Airbus was “delighted to see a long-term vision built on a genuine partnership with industry.”

Jake Geer, Managing Director of Orbit Fab UK said the plan gave a clear signal to business about the UK's readiness to scale-up. “The UK needs to move fast to deliver these commitments, and we now wait to see how, when and at what speed the Spending Review will implement the planned interventions,” he added.

Skyora’s Alan Thompson welcomed the strategy saying it signalled a growing economic coherence and interconnectedness that will continue to enable growth and be further reinforced by faster growth of the UK space industry.

Space marketing and business development strategist Daniel Smith, founder of AstroAgency, said it was encouraging to see the UK’s Industrial Strategy recognise space technology as both critical infrastructure and a key driver of economic growth, underpinning a wide range of business sectors.

“With effective delivery, it has the potential to catalyse the sovereign capabilities and resilience the industry has long called for. Alongside the Strategic Defence Review, it sets the stage for timely and meaningful discussion at next month’s UK Space Conference in Manchester,” he added.

Dr Marco Rocchetto, CEO of Spaceflux described the strategy as having the potential to make a meaningful impact on the space sector and the wider economy.

Lewis D’Ambra, Head of Government Affairs, Space Forge, said: “The new strategy signals a pivotal shift in how the UK backs its most promising space innovators.We welcome the government’s sharper focus on core capabilities - it’s exactly what’s needed to unlock scale and position the UK as a manufacturing powerhouse in orbit and on Earth.”


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