The UK Space Agency is being brought into DSIT - what does this mean for the sector?
The Government has announced that the UK Space Agency (UKSA) will be absorbed into the Department of Science Innovation and Technology (DSIT). The move, which is due to take place in April 2026, will bring together policy, strategy and delivery under one roof. This is intended to promote faster decision-making and enable the Agency to keep pace with the growing relevance of the space sector to the UK economy.
Although the UKSA was involved in cross-sector discussions spanning several technology areas, the restructure will bring closer together the dialogue between teams involved in related activities, such as the Industrial Strategy-led Advanced Connectivity Technologies (ACT).1 It also bears relevance to the development of the Regulatory Innovation Office (RIO), which sits within DSIT and holds under its remit to address specific regulatory challenges in the space sector to improve investment, competition and market access.
Since its inception in 2010, the UKSA has been responsible for providing focus and agility supercharging investment in several areas of the space sector, notably space applications (including communications, Positioning, Navigation and Timing (PNT), and Earth Observation), operations, and sustainability.
The latest Rendezvous and Proximity Operations (RPO) funding sets a direction for the In-Space Economy segment, which has grown 42% YoY.2 As a whole, the sector is now worth £18.6bn a year, employing 55,000 across the UK.
techUK's initial reaction
techUK is the UK’s leading technology trade association, comprising over 1100 member companies leading on the development and application of everything from satellite communications to robotics. Many other members play a vital role in providing world-class space services across consultancy, law, insurance and more.
Recent conversations with our members indicate that many have received today’s news with cautious optimism.
Members have told us that the integration of the UKSA into DSIT is a positive step towards greater alignment in the development and delivery of the UK’s space policy and priorities. By bringing policy, strategy and delivery functions closer together, the move appears to have the potential to improve cross-departmental coordination, ensuring that space is integrated more effectively into wider national priorities, including on strategically important dual-use programmes and sovereign capabilities.
This more consolidated approach should benefit industry by providing a single point of contact that simplifies engagement with government and subsequently helps to accelerate delivery.
Overall, I think that this is a positive move, which should streamline activity into one body with the associated efficiencies, as well as one point of contact across the sector; however, it will take a lot of work to ensure that the new body is greater than the sum of the parts and turns those efficiencies into the effectiveness to deliver the capabilities which the UK requires in the space sector. It is incredibly important that the new body engages with industry and maintains a close dialogue throughout the merger to ensure the UK Space sector remains at the top table internationally.
Despite this, some members have expressed concerns regarding the potential dilution of UKSA’s technical expertise, in addition to its future ability to act with agility, keep pace with fast-moving technical developments, and respond effectively to international opportunities.
Similarly, the move could create barriers to accessing institutional support by slowing down procurement processes. At the same time, budgets will be more exposed to political cycles Against this backdrop, government may wish to consider empowering other entities to take the lead on coordinating the UK’s focus and spending on space-related initiatives.
Furthermore, this move may risk the international position of the UK space sector, unless it is followed by programmes that reduce barriers for businesses seeking to access international opportunities to launch new products and services through initiatives such as Horizon Europe. This could be mitigated through greater UK participation in international investment programmes focused on innovation.
The expectation is that this organisational change will lay the foundations for an improved relationship with allied nations and help to develop a stronger international customer base for UK-based companies.
Conclusion
While it is too early to tell whether this move will be a success, government must ensure that the UKSA’s current expertise and sense of dynamism are retained and that its integration within DSIT facilitates a truly cross-government approach to space policy, strategy and delivery. Such an approach should seamlessly incorporate both space and non-space companies of all sizes, as well as a range of government departments that are integral to future UK leadership in space.
This is essential if the UK is to fully grasp the potential of space to drive growth and resilience and ensure leadership in the New Space Economy of the future.
With this in mind, techUK invites its members and the wider community to explore ways to support this transition, overcome subsequent challenges and further position the UK for success regarding the use of technologies for and in space - feel free to reach out to [email protected] and [email protected] with any questions or feedback.
Sophie Greaves
Sophie Greaves is Associate Director for Digital Infrastructure at techUK, overseeing the Communications Infrastructure and Services Programme at techUK, and the UK Spectrum Policy Forum.
Tales Gaspar
Tales has a background in law and economics, with previous experience in the regulation of new technologies and infrastructure.
Josh Turpin
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
Ella Shuter
Ella joined techUK in July 2025 as Junior Programme Manager for Emerging Technologies.
Laura Foster
Laura is techUK’s Associate Director for Technology and Innovation.
Elis Thomas
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on Semiconductors and Digital ID.
