The UK’s Bold Vision for Space: 5 Key Takeaways from the 2025 Industrial Strategy

The UK Government’s 2025 Industrial Strategy sets out a transformative 10-year plan to drive economic growth through innovation, investment, and strategic partnerships. Among the eight high-growth sectors identified, the space industry stands out as a key frontier within the Advanced Manufacturing sector. Here’s 5 key takeaways to be aware of:

1. Space Recognised as a Frontier Industry

Space has been officially designated as one of six frontier industries within the UK’s Advanced Manufacturing sector. This recognition places it alongside aerospace, automotive, batteries, advanced materials, and agri-tech — highlighting its strategic importance for national innovation, security, and economic growth.

2. A Strategic Focus on Industrialised Space Capabilities

The UK aims to become a leading European space exporter by 2030. To achieve this, the government is focusing on five priority capabilities: Satellite Communications, Positioning/Navigation/Timing, In-orbit Servicing and Manufacturing, Space Domain Awareness, and Space Data Architecture. These areas are seen as critical for both economic growth and national security.

3. Investment to Scale Up and Industrialise

The government is committing up to £135 million across several programmes, including the National Space Innovation Programme, Space Clusters Infrastructure Fund, and Unlocking Space. These initiatives aim to help UK space companies move from R&D to commercialisation, with a focus on scaling up businesses to generate over £10 million in revenue and strengthening the UK’s position in global supply chains.

4. Unlocking Private Capital and Financial Innovation

To support growth, the UK will implement a Private Investment Framework for Space, designed to attract private capital into strategically important space technologies. The UK Space Agency will offer a mix of grants, procurement, and co-investment mechanisms. The government also plans to leverage the UK’s financial services sector to position the UK as a global hub for space finance.

5. Regulatory Reform and Skills for the Future

The UK is reforming its regulatory environment to support end-to-end satellite manufacturing, launch, and in-orbit servicing under a single framework. This includes expanding the Space Regulatory Sandbox and developing new sustainability standards. On the talent front, the Space Education and Future Workforce programme will address skills gaps and support workforce transition from adjacent sectors, ensuring the UK has the talent to lead in the New Space Age.

The Scottish Outlook

Scotland is home to one of the UK’s most prominent space clusters. The Glasgow City Region (GCR) is highlighted as a key Investment Zone with a focus on space, maritime, and semiconductors. The GCR will receive £160 million over 10 years as part of the UK’s Industrial Strategy Zones programme. This funding will support:

• Infrastructure development.
• Skills and retraining programmes.
• R&D and business support tailored to the space and advanced manufacturing sectors.

Final Thoughts

With targeted investment, regulatory innovation, and a focus on industrialisation, the UK is positioning itself as a serious contender in the global space economy. The 2025 Sector Plan marks a pivotal step in transforming the UK into a spacefaring nation with resilient, dual-use capabilities that serve both commercial and national security interests.

How can we help? 

Burges Salmon is committed to supporting the UK space sector. Our Space and Satellites team possesses decades of experience, providing tailored support to space companies. Additionally, we have partnered with Space Scotland to further support the ecosystem, and ensuring that we are at the forefront of this exciting sector.