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Wednesday 02 February 2022 1:29 pm  |  Updated:  Wednesday 02 February 2022 1:31 pm

UK to strengthen ‘space clusters’ following £1.4bn defence investment

By: Millie Turner

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CGI of the UK's first vertical launch site based in the Scottish Highlands (NORR / Highlands and Islands Enterprise)

The UK is set to inject extra cash into so-called ‘space clusters’ – regional hubs where the space industry is booming, such as Cornwall and Scotland.

Forming part of the government’s Levelling Up White Paper today, it comes as the Ministry of Defence (MoD) confirmed a £1.4bn investment into future space defence yesterday.

Defence secretary Ben Wallace said: “It’s crucial we continue to push the frontiers of our defence space ambitions, enhancing our military resilience and strengthening our nation’s security.”

The figure includes £968m going towards a new multi-satellite system, known as ISTARI, which will amp up global surveillance as tensions rise between Russia and Ukraine.

While a further £61m will be used to develop laser communications, sending data from space to Earth as quickly as superfast broadband.

“The establishment of the US Space Force and UK Space Command highlights the growing role of space in warfare, and the growth of international collaboration…”

Global Data associate analyst, James Marques

UK Space Agency boss Dr Paul Bate added: “We are building on our strengths in space such as satellite manufacturing, while supporting emerging markets like in-orbit servicing, to unlock the growth in the UK space sector and help level up the economy.”

The fresh bout of space defence cash is on top of the existing £5bn already being used to upgrade the UK’s Skynet satellite communications capability – providing strategic communication services to the UK armed forces and allies.

Associate analyst at GlobalData Aerospace, Defence and Security, James Marques said that by investing in this area, the MoD is “enhancing the reactivity of the British military — in line with the goal of sustaining a strategic advantage through science and technology”.

“The establishment of the US Space Force and UK Space Command highlights the growing role of space in warfare, and the growth of international collaboration between companies such as Serco, Lockheed Martin and CGI speak to the complex nature of the industry,” he continued.

The global military satellite market has been forecast to swell to around £77bn ($104.5bn) over the next decade – with intelligence and surveillance satellites making up a little over half of the market, according to GlobalData’s research.

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Rolls-Royce shares rise as Burnham pledges investment in British defence

Andy Burnham speaking at a press conference, wearing a suit and tie, addressing current political issues in Manchester.

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