UK Space Agency to Merge with DSIT by 2026 in Landmark Boost for Britain’s Space Future
The UK’s growing space industry is set for a shake-up. The UK Space Agency will officially merge with the Department for Science, Innovation and Technology (DSIT) by April 2026, in what ministers are calling a once-in-a-generation transformation for Britain’s place in space.
The move, announced this week, is designed to strip away layers of bureaucracy, streamline oversight, and keep ministers directly accountable for a sector that already contributes billions to the UK economy.
Crucially, the UK Space Agency will keep its name and brand identity. But behind the scenes, its expertise will be fully integrated with DSIT, pulling strategy and delivery under one roof for the first time.
Space is vital to Britain’s economy
UK Space Minister Sir Chris Bryant underlined the scale of the shift: “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.”
Industry demand and a £2.7bn opportunity
The announcement lands alongside a set of 60 recommendations from space industry leaders on regulation and innovation.
One focus is Rendezvous and Proximity Operations (RPO), where spacecraft operate together in orbit. Experts forecast this could unlock a £2.7 billion global market by 2031.
With the right regulation, UK companies could secure up to a quarter of that, driving breakthroughs in satellite servicing, in-orbit assembly, and advanced manufacturing.
Such technology would cut down on space debris, extend satellite lifespans, and open the door to a new generation of orbital infrastructure.
Cutting red tape across the government
The UK Space Agency’s integration with DSIT is part of a broader Whitehall drive to slim down “Arm’s Length Bodies”. The same programme will also see NHS England abolished in the coming years, billed as a crackdown on duplication and waste.
The UK Space Agency, established in 2010, already acts as an executive body of DSIT. Last year alone, it catalysed at least £2.2 billion in investment and revenue for the space industry.
A major step to boost the UK’s space sector – @spacegovuk will join @SciTechGovUK!
Helping to cut duplication, reduce red tape, and increase efficiency in line with our Plan for Change. pic.twitter.com/O0upyfDeCY
— Department for Science, Innovation and Technology (@SciTechgovuk) August 20, 2025
Officials insist the merger will be gradual, with both teams working side by side until 2026 to keep industry stability intact.
Agency CEO Dr Paul Bate welcomed the announcement, saying: “I strongly welcome this improved approach to achieving the government’s space ambitions.
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.
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.”
Sandbox testing – building tomorrow’s space rules
Innovation won’t wait until 2026. The UK has already launched a Regulatory Sandbox for RPO missions, in collaboration with firms including Astroscale, ClearSpace, and D-Orbit.
The sandbox model creates a safe testbed for companies to trial cutting-edge technology, while regulators update the rulebook in real time. The first results are now out, and they will directly feed into Britain’s first active debris removal mission, scheduled for launch in 2028.
That mission will showcase the UK’s ability to capture and clear old satellites, a step seen as essential for keeping space sustainable.
A global stage for British innovation
Industry insiders argue Britain has the chance to lead the world in orbital services like refuelling, in-space repairs, and debris clearance. By cutting red tape and modernising regulations, the government hopes to position the UK as a global hub for the space economy.
The planned merger is more than just an administrative shuffle. It marks a long-term commitment to make the UK Space Agency the driving force behind Britain’s ambitions in orbit, marrying science, investment, and innovation with political oversight.
For a nation where satellites already underpin nearly 20% of GDP, the stakes couldn’t be higher.
