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UK Government Abolishes Independent UK Space Agency; Will Merge Into DSIT by 2026

The UK Space Agency will cease to exist as an independent body by April 2026, as part of government reforms to cut bureaucracy and streamline decision-making.

3 minute readUpdated 4:44 AM EDT, Wed August 20, 2025

LONDON — The UK Space Agency will cease to exist as an independent body by April 2026, as part of government reforms to cut bureaucracy and streamline decision-making.

The agency will be absorbed into the Department for Science, Innovation and Technology (DSIT), though it will retain the UK Space Agency (UKSA) name and brand. Officials said the change would reduce duplication, improve efficiency, and ensure stronger ministerial oversight.

“Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector,” - Space Minister Sir Chris Bryant.

Founded in 2010, UKSA was created to coordinate Britain’s space strategy, foster industrial growth, and represent the country internationally. The agency helped support the launch of British astronaut Tim Peake to the International Space Station, spearheaded the UK’s small-satellite sector, and oversaw development of Scotland’s emerging launch facilities.

The space sector contributes an estimated £18.6 billion a year to the economy and supports around 55,000 jobs. In 2024/2025 alone, UKSA was credited with catalyzing £2.2 billion in investment and revenue.

Supporters of the agency expressed concern that the merger could slow innovation and reduce agility. One space scientist warned the move could disrupt projects in the short term and risk Britain falling behind international competitors.

“Having a single unit with a golden thread through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality...In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability....We will continue to deliver, while reducing duplication and ensuring we work even more closely with Ministers to support the UK space sector, and the country.” - UK Space Agency CEO Dr Paul Bate

No immediate changes will be made to existing contracts or grants, officials said, and the transition is expected to be completed by April 2026.

This is a developing story; check back for more details.

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