Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of withdrawing funding for Orbex on the UK's satellite launch capabilities and employment in the aerospace sector.

Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)

The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.

The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.

While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government for what reason they withdrew funding to Orbex to develop a UK-based satellite delivery system.

Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)

The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.

The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.

While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what funding options they considered when evaluating whether to withdraw funding for Orbex.

Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)

The UK did not withhold ESA funding from Orbex. The UK subscribed c.£162m to ESA launch programmes in November 2025 and allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do. Had the company been able to raise the required funding, they would have been able to access the overwhelming majority of this £162m.

The Government made every reasonable effort to support Orbex. This included two cash injections of £20m and £6m last year to support the company to raise further private capital. Space launch is a highly competitive sector, and Orbex was unfortunately not able to maintain pace with European competitors, both in terms of its fundraising and technology.

While Orbex’s situation is disappointing, the Government remains committed to supporting our dynamic space sector, including companies operating out of Scotland such as SaxaVord Spaceport and Rocket Factory Augsburg. Orbex employees were highly skilled, and we understand that many, if not all, Orbex employees have gone on to find alternative employment.