Space Activities in Orbit: Contingent Liability Arrangements

Blair McDougall Excerpts

Thursday 12th November 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)]

My hon. Friend the Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Baroness Lloyd of Effra CBE) has today made the following statement.

A departmental minute is being laid before Parliament today setting out updated contingent liability arrangements arising from new liability and insurance measures announced alongside the space strategy on 8 September.

The UK has a thriving space sector, which is increasingly providing critical services to support our daily lives and which underpins 18% of UK GDP.

Faced with great opportunities in the burgeoning space economy, the UK space strategy available online at: https://www.gov.uk/government/publications/uk-space-strategy backed by a record £7.8 billion until 2030, brings the Government’s space investment and activity under one plan to drive growth, strengthen security and back the technologies that underpin modern life.

The strategy details how Government will go further and faster to develop capability and deliver outcomes in our four priority subsectors, including in-orbit servicing, assembly and manufacturing.

Alongside the strategy, the Government have announced reforms to space regulations to reduce costs, reward responsible operators and make it easier for UK firms to invest in cutting-edge missions from satellite servicing to lunar exploration by:

Adopting a world-first variable third-party liability limits approach for orbital operations to incentivise uptake of Government priorities of security and space sustainability, reduce cost burdens on UK companies and stimulate increased commercial investment in the UK’s space sector.

Waiving operator third-party liability for innovative and novel space missions launched before the end of 2030—in-orbit servicing, assembly and manufacturing, and lunar missions—to help support development of high-potential technologies.

Adoption of new world-first models for the provision of third-party liability insurance to support innovation in the City of London space insurance market.

Abolishing decommissioning funds for operators of constellations in favour of a more proportionate approach to monitoring operators’ financial health.

I have therefore today laid a departmental minute updating the previously notified contingent liability that arises from the changes announced on adopting variable liability limits for orbital operations, and waiving third-party liability and insurance requirements for innovative missions.

A potential contingent liability is created each time a space activity—not including launch activity under this notification, as this is covered by a separate notification—is conducted involving UK-licensed entities. The measures announced could create a maximum additional exposure of £50 million for any single claim compared with the current arrangements. In general, the risk of a claim rising is considered to be remote and, to date, no claim has been made for damage caused by a UK-licensed space object.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination.

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