Five difficult choices for the National Space Strategy

Investment in major programmes which place Government at the heart of the sector could be seen as a valuable ambition with tangible legacy. The significant funding associated would undoubtedly signal a serious intent to deliver leading capabilities for the UK and its allies, and could enhance economic spillovers, exports, collaborations and reputation, all supporting the NSS vision. Landmark examples include the USA’s Global Positioning Service (GPS) being embedded into global infrastructure, or the EU’s Copernicus programme which provides free access to earth observation data. Such programmes may require innovative commercial and financing models, and a mindset of encouraging innovation through longer-term higher risk efforts.

Alternative investment and capability approaches could also be taken, including the stimulation of the sector’s ‘grassroots’. Investment into SME innovation, academia and ecosystems could provide strong foundations for UK innovation to solve challenges at home and overseas, albeit with potentially less of a ‘big bang’ effect. This trade-off will require the Government to consider what role they want to play in the delivery of the NSS.

Questions are inevitable about how the UK can deliver the commitments in the NSS, while grounded in economic realities. Given the pressures on public expenditure, the Government will need to work hard to maximise the return on space investments. We see two opportunities:

Greater alignment to wider cross-Government agendas: There are many intersections of ‘the case for space’ with priority initiatives across Government, which could enable greater spending power. ‘Build Back Better’, ‘Unleashing Innovation’, ‘Levelling Up’ and ‘Net Zero’ are clear in the NSS, but what role can agendas such as transport connectivity, healthcare provision and national security play? Stronger alignment to cross-Government priorities will increase the chances of successful delivery.

Effective governance: Transitioning from strategy to execution will require a one nation approach, including cross-Whitehall governance which brings together departments and arms-length bodies. An effective governance and delivery framework will be needed to coordinate and optimise activity. This is not an easy challenge, but will be a critical enabler to maximise the effectiveness of Government investment.

The new CEO of the UK Space Agency, Paul Bate, has made clear that space is a “team sport”, and the accomplishments of the European Space Agency show the benefits of collective investments, diverse capabilities and scale. The UK has benefited from being a key player in some of Europe’s major space programmes with collaborative investments easing the pressures on domestic expenditure. However, such partnerships can also dilute UK benefits, for example limiting UK system influence and reducing expenditure directed to the UK supply chain.

International collaboration is recognised by the NSS as a key pillar, and so where international collaboration is sought, the question remains ‘with who’? Our partners at ESA, the Five Eyes intelligence community (USA, Australia, New Zealand and Canada), or even a greater shift to Indo-Pacific countries such as Japan or India, who are increasingly influential in the space domain. Each partnership will come with a different context, agenda and benefits, necessitating a different approach. ‘Better together’ or ‘go it alone’ choices will need to be considered to balance UK benefits sought by the NSS with those of collaboration and the constrained financial environment.

To create an environment for the UK space sector to thrive, the Government must navigate trade-offs between facilitating a high-pace ambitious growth agenda with the need for appropriate regulation.

Creating supportive conditions for example through the use of grants, tax reliefs, reduced bureaucracy and regulatory hurdles would help the UK attract global investment and skills. However, the sustainability, security and safety of space could be at risk if companies are able to operate without the necessary care over safety, debris removal, cyber security and emissions. With the Civil Aviation Authority this year committing to “create a safe, innovative and thriving space industry”, there is an opportunity for the UK to become a pioneer in space legislation. The right balance must be found to support the sector to expand safely.