The Space Economy (UK Engagement with Space Committee Report)

Viscount Camrose Excerpts

Thursday 9th July 2026 Lords Chamber

[Viscount Camrose (Con)]

My Lords, I too begin by thanking the noble Baroness, Lady Ashton of Upholland, and every member of the committee for this powerful and timely report, although I must say that my principal reaction is one of envy—I rather wish I had been on the committee. The report makes the genuinely compelling case that space policy is central both to our national security and to our future prosperity. The space economy does not get the attention it deserves, either in this House, as the noble Viscount, Lord Stansgate, has pointed out, or with the public more generally, so I am delighted that, through this report and in this excellent debate, we have some small chance to address that.

The report reminds us that much of modern life depends on space technologies. Many of us enjoy these technologies without even realising this. From satellite navigation, banking systems and weather forecasting to logistics, these capabilities underpin a significant portion of our economy. I was really struck by the estimate that some 18% of UK GDP relies on satellite services alone. The committee is right to argue that Britain possesses many strengths and great potential in this area. We boast world-class universities, innovative companies, growing launch capability, and internationally respected scientific expertise.

But the question before us today is whether we have the strategic focus needed to realise and unleash our collective vast potential. We on these Benches welcome the Government’s recognition that space forms part of our critical national infrastructure and represents an important opportunity for economic growth. We also acknowledge the steps that have been taken to support skills development and improve strategic co-ordination across government. However, as the committee concluded, ambition alone is not enough. Businesses require certainty, investors require confidence and researchers require long-term support. Without clear priorities and more consistent delivery, there is a risk, as many noble Lords have pointed out, that innovative British companies may simply choose to scale elsewhere.

Many of the committee’s recommendations deserve serious consideration. The call for clearer strategic direction, better cross-government co-ordination, a funding model that helps firms scale beyond the research stage, greater support for skills and an agile regulatory framework all speak to the practical steps needed if we are to compete in an increasingly crowded global marketplace. Let us make no mistake—it really is increasingly crowded, as many noble Lords have pointed out.

There is also a critical national security dimension. As the committee and noble Lords have recognised, civil and defence capabilities are becoming ever more closely intertwined, and I was unsurprised to note the increasing use of “dual-use” terminology throughout the report and in our debate today. Investing in technologies with commercial and strategic applications both strengthens our resilience and creates opportunities for economic growth. The previous Government recognised this through the publication of the National Space Strategy in 2021, providing for the first time a comprehensive framework bringing together civil, commercial, defence and security objectives. That is an important foundation, but it has been some time since its publication and this Government have now been in power for two years. The challenge now is ensuring that that strategy continues to be translated into delivery.

With those thoughts in mind, I would be very grateful if the Minister could address the following questions. First, combined with some of the sums in the defence investment plan that the noble Lord, Lord Lansley, brought up, how much government spending will be dedicated to R&D and manufacturing in the space economy? Secondly, what further steps are being taken to help innovative UK space companies access the capital they need to grow and remain headquartered in this country? Thirdly—I recognise this is a huge question that stretches far beyond space, but it is critical here—how can we improve government procurement to support our space industry participants of all sizes? I was particularly concerned by the remarks of my noble friend Lord Willetts that the National Wealth Fund is giving out that it does not want to invest in space. I urge the Minister to get to the bottom of that as soon as possible, because clearly that would be a very serious error. Fourthly, how do the Government intend to ensure that the UK remains internationally competitive in the space sector, particularly as we have heard other nations increase investment and develop their own capabilities?

Finally, while the Government have, as we have heard, rejected the committee’s recommendation for a dedicated Space Minister, how will they ensure that effective cross-government leadership and accountability are maintained across departments? Will we see a change of mind on that as the new Prime Minister steps in? Like other noble Lords, I echo the sentiment that the title Act Now or Lose Out is entirely appropriate. We have the talent in this country, the science, the potential and the industrial capability to succeed. The opportunity is there. The task now is to ensure that government policy matches that ambition. In that spirit, I look forward to the Minister’s response.