UK invests in homegrown space tech to boost national resilience

The UK government has announced £62 million in new funding to develop sovereign satellite communications technology and accelerate space innovation across British industry and academia.

The investment is aimed at strengthening the UK’s ability to monitor and protect assets in orbit and access space-based services the country relies upon, including broadband for remote communities and mobile connectivity on rail, in the air and at sea, helping protect national independence in a strategically vital sector.

The funding – unveiled yesterday at Farnborough International Airshow by Space Minister Liz Lloyd – will support new satellite communications systems and space innovation projects, helping turn early-stage ideas into commercial products, strengthen the UK’s ability to monitor and protect assets in orbit, and build a more resilient domestic space sector.

Building domestic capability in these areas is vital to strengthen the UK’s national security, economic resilience and ability to act confidently on the world stage.

This funding puts that ambition into action. It will help UK innovators build the satellite communications, space security and commercial technologies that strengthen Britain’s competitiveness, resilience and security.

New figures from the UK Space Agency show that pipeline is already expanding. Its Accelerator programme, which works with new space companies to help them attract investment, develop their technologies and win customers, has supported 289 founders and helped raise more than £102 million in investment.

Space Minister Liz Lloyd said: “Space is not just a scientific frontier, it is a strategic one. If we do not build national capabilities at home, we become overly dependent on others for technologies we cannot afford to be without.

“That is why today we are announcing £62 million for satellite communications and space innovation, investing in the British businesses and researchers who will make that capability real. This funding will help develop new satellite communications technologies to keep remote communities connected, capture a growing market for on-orbit manufactured products and strengthen our ability to monitor and protect assets in orbit, while supporting the next generation of space innovators turning early-stage ideas into commercial products.

“Strengthening domestic capability in these areas, alongside working with international partners, will help ensure the UK remains secure, resilient and a leader on the world stage.”

The £62 million includes £42 million to develop new British satellite communications technologies and £20 million to support space innovation projects across industry and universities.

Backing next-gen satellite comms

The Connectivity in Low Earth Orbit (C-LEO) Programme is opening its third funding round, offering £42 million to UK businesses, universities and research organisations to develop new satellite communications technologies.

Satellite communications are increasingly delivering essential connectivity services to remote regions and are increasingly essential to national resilience. Projects must focus on one or more of five areas: on-board processing, active antennas, optical links, networking and routing, or user terminals. This round will bring total C-LEO funding to UK organisations to up to £77 million.

Fuelling space innovation across industry and academia

The National Space Innovation Programme (NSIP) is launching a new £20 million funding call to support the development of space technologies across UK industry, universities and research organisations, with projects due to begin in April 2027. The funding is available through two routes: Kick Starter, for early-stage ideas and Major Projects, for businesses looking to grow and commercialise. Applications are welcome across all areas of space technology, with up to 40% of the budget focused on Space Domain Awareness and In-Space Assembly and Manufacturing — two areas where domestic capability is vital to the UK’s ability to understand and respond to threats in orbit.

Space Clusters Infrastructure Fund call

Additionally, the Space Clusters Infrastructure Fund (SCIF) is inviting organisations to register their interest ahead of a new funding call launching in Autumn. The upcoming call will award £37 million in grants by 2030, building on a pilot phase that delivered 13 projects across the UK.

A fragmented or underdeveloped domestic space sector leaves the UK exposed — SCIF directly addresses this by strengthening regional space infrastructure and capabilities, reducing dependence on international partners for access to critical space assets. Organisations interested in applying are encouraged to register their interest before the full call opens later this year.

Nearly 300 founders backed and over £100m raised

A new report published by the UK Space Agency yesterday shows its Accelerator programme has supported 289 founders, helped them raise £102.2 million in investment, created 209 jobs and seen 89% of businesses still trading since the programme launched in 2021.

The Accelerator helps new space businesses grow, offering support on leadership, attracting investment and winning customers and connects startups with investors, partners and regional networks across the UK, building the domestic talent pipeline that sovereign capability depends on.