The UK government is set to invest £30 million in the SaxaVord spaceport located in Shetland, marking a significant commitment in the country’s updated space strategy expected to be announced this week. The funding, subject to due diligence, will support the spaceport’s ambition to conduct the first vertical rocket launch from Europe within the coming months.

The SaxaVord spaceport, situated on the island of Unst at a former Royal Air Force radar station, has regulatory approval for up to 30 launches annually. Alongside the government’s contribution, private investors are committing an additional £30 million. The site aims to capture up to 75% of Europe’s orbital launch slots, positioning itself as a key player in the continent’s expanding space industry.

In parallel with the spaceport investment, the government plans to allocate £148 million toward the development of British rockets, aiming to ensure the UK’s secure access to space. This funding package, which intersects with the UK’s involvement in European Space Agency (ESA) programmes, is expected principally to benefit domestic companies working on technologies such as satellite systems, robotics, and refuelling capabilities. However, it will also be accessible to European launch technology operators interested in establishing operations within the UK.

The government’s broader space strategy outlines a total expenditure of £7.8 billion across various departments through 2029-30, drawing from budgets allocated in the previous spending review. The UK space industry, comprising around 1,800 companies, generated close to £19 billion in revenue during the 2021-22 period, according to figures from the sector’s trade association UKSpace.

Jonathan Reynolds, the Secretary for Business, Innovation, Science, and Trade, highlighted the growing importance of UK industry in the global space sector. He noted that while public perception often defaults to iconic moments like the moon landings or rocket launches in the United States, British firms are increasingly vital in developing the advanced technologies underpinning modern space missions. Examples include the Rosalind Franklin Rover constructed in Stevenage, which is slated for upcoming ESA missions seeking signs of life on Mars, and Cornwall’s Goonhilly radar system, which recently assisted in tracking NASA’s Orion spacecraft.

Despite the sector’s growth, challenges remain. Orbex, once considered the UK’s foremost private launch company with a valuation of $220 million, entered administration earlier this year. Additionally, SaxaVord has faced delays in its planned rocket launches, underscoring the technical and financial hurdles inherent in expanding the nation’s space launch capabilities.