The UK invests £62 million to improve homegrown space technology and satellite innovation
The UK government has announced a £62 million investment to accelerate the development of British space technology, supporting businesses, universities and researchers while strengthening the country’s resilience in an increasingly important strategic sector
The funding package was announced at the Farnborough International Airshow and is designed to boost the UK’s ability to develop its own satellite communications, improve space security and help innovative companies turn new ideas into commercial success.
Investing in satellite technology
The largest share of the funding, £42 million, will be directed through the Connectivity in Low Earth Orbit (C-LEO) Programme.
The initiative supports the development of advanced satellite communications technologies that can improve connectivity across the UK, particularly in remote and rural areas where traditional broadband infrastructure can be difficult to deliver.
Funding will focus on five key technology areas: on-board satellite processing, active antennas, optical communication links, networking and routing systems, and user terminals.
This latest funding round brings the total investment available through the C-LEO programme to £77 million.
Supporting innovation across the space sector
A further £20 million will be made available through the National Space Innovation Programme (NSIP), providing opportunities for companies, universities and research organisations to develop new space technologies.
The programme will offer two funding routes. The Kick Starter scheme is aimed at supporting promising early-stage concepts, while the Major Projects stream will help businesses scale up technologies and bring products closer to commercial markets.
Around 40 per cent of the available funding will target Space Domain Awareness and In-Space Assembly and Manufacturing, two rapidly developing areas considered essential for monitoring activity in orbit, protecting space assets and expanding future commercial opportunities.
Projects supported through this funding call are expected to begin in April 2027.
Building stronger regional space clusters
Alongside the immediate funding announcements, organisations are being invited to register their interest ahead of a new Space Clusters Infrastructure Fund (SCIF) competition launching this autumn.
The programme will award £37 million in grants by 2030 to strengthen regional space infrastructure across the UK. It follows a successful pilot phase that supported 13 projects and aims to reduce reliance on overseas infrastructure by expanding Britain’s own space capabilities.
Growing Britain’s space economy
The funding announcement comes alongside new figures highlighting the impact of the UK Space Agency’s Accelerator programme since its launch in 2021.
The initiative has supported 289 founders developing space-related businesses and helped them secure more than £102 million in investment. The programme has also contributed to the creation of 209 jobs, while 89 percent of participating businesses remain in operation.
By providing leadership support, investment readiness and access to customers and industry networks, the Accelerator has helped strengthen the UK’s growing space ecosystem and encourage new companies to enter the sector.
