Tag Archives: UK Space Agency

Would a Brexit crush the budding UK Space Economy?

Would a Brexit crush the budding UK Space Economy?

With the UK government committed to a referendum on membership of the EU by 2017 if not earlier, what does this mean for a UK space economy whose ongoing success is so closely linked to the European Space Agency?

Although space agencies could now be seen as facilitators of a burgeoning private space sector rather than the drivers of everything in space, politics and governments will still continue to be very important; no sector of the economy can be immune from big political changes, but is the space economy even more vulnerable?

What will become of the UK’s involvement in the European Space Agency (ESA) if there is a British exit from the EU, what will happen to ESA facilities and employees in the UK, and ESA contracts with British companies? At a time when Britain awaits the imminent launch into space of ESA’s first British astronaut, Tim Peake, and the certainty of a referendum in the next year or two, these questions need to be out in the open, and some answers available.

This weeks’ successful UK Space Conference in Liverpool told the many success stories of the UK Space industry, many of which depend on the ESA at one point or another. The UK is already punching above its weight in the space economy, and has ambitious plans to develop this further. The target of the UK Space Agency and the Government is for the UK space sector to be worth £40 billion by 2030, employing 100,000 people. With 37,000 people already employed, with £9 billion current contribution to the UK economy, it’s easy to argue that they are well on their way.

10EC2268_Diamond_aerial_view1
The new ESA facility at Harwell. Photo credit ESA.

So what happens during the period of uncertainty in the build up to the referendum, let alone a British exit? Do the ESA employees all become unemployed the day after such a vote? Not necessarily was the response from UK Space and commercial interests at the UK Space Conference. A representative from the UK Space Agency pointed out that non EU members can become associate members of the ESA and forge their own agreement, however such a difficult process would be undesirable, and of course the outcome contains some uncertainty. One of the success stories told at the conference was a UK star-up, RDT, who produce satellite navigation and communication units. The company has seen incredible growth, and had support from the ESA at each step of their journey. Chris Harman, the head of RDT, expressed a personal preference to remain inside the EU, but made the point that not all their competitors are within the EU. These competitors still have to make their products to the same specs and compete in the same markets, so membership wouldn’t mean the end of their company, or even their growth, but the question is left hanging as to whether RDT could have developed as it did in a world without the ESA.

It’s worth looking at Jo Johnson, the minister with responsibility for science and universities, who recently opened the new ESA facility (ECSAT) in Harlow. Jo is brother of the much more famous politician, Boris, but being related doesn’t mean Jo shares his brother’s views. In fact, they may be on opposite sides of the EU debate; with Jo being much more pro-EU than his brother’s well documented euro-scepticism.

1436548795087652
Science Minister Jo Johnson, ESA Director General Johann-Dietrich Woerner, ECSAT Head Magali Vaissiere, UKSA Head David Parker at the new ESA facility in Harwell

Jo, while sharing his brother’s drive and intellectual prowess, perhaps isn’t a typical Conservative politician in some ways, his wife is an award winning write for the left-wing Guardian newspaper for example. Jo Johnson achieved a first in his history degree from Balliol college, and made a name for himself writing for the Financial Times, at one point as the FT’s bureau chief in Delhi. Jo clearly understands the challenges for the UK to remain competitive framed against the emerging giants such as India and China, and his writing has perhaps been the best expression of how his politics could define him; as someone who knows what it would mean to act pragmatically in Britain’s economic interest.

The Government’s support for the space sector at a time of general spending reduction would also be evidence of that approach. At a time when the space sector is getting to know Jo Johnson, it may come to be very glad that they have this particular champion. Time will tell, and we won’t have too long to wait to find out.

New UK Strategy for space – let us know what you think

The UK government has published its strategy for space, which on first reading doesn’t appear to contain anything very new. The possibility of a space port in the UK is mentioned, but without any further detail and it’s difficult to know what the timescale is for defining this project further.

The document is below:

Space_Environments_and_Human_Spaceflight_Strategyv2

Minister for Universities and Science Jo Johnson said:

From new advances in healthcare to getting our young people really excited about science, human spaceflight has the potential to deliver a huge range of benefits here on Earth. This strategy outlines our ambition to advance scientific knowledge and create the right environment for human spaceflight and space environment research to boost growth and deliver new technologies that will improve everyday life in the future.

Dr David Parker, Chief Executive of the UK Space Agency, said:

Our new national strategy is all about making the most of space: exploiting the unique opportunities for growth which human spaceflight and associated research programmes can offer. I’m immensely proud of British scientists, who really are among the world’s best, as demonstrated by the strong showing in the recent international space life sciences competition. Space and life sciences are two areas where the UK has a proud heritage and the UK Space Agency is committed to helping researchers access unique facilities such as the ISS.

Insurance Premium Tax exemption for UK spacecraft operators

In a boost for the UK’s space industry an exemption has been created from Insurance Premium Tax for UK spacecraft operators. The change came into force on 1 December 2014, exempting contracts of insurance that cover risks relating to the operation of spacecraft during launch, orbit, flight or re-entry.

Previously an insurance policy relating to spacecraft was liable to IPT at the standard rate of six per cent. After consulting with the UK space industry and receiving representation concerning the negative impact of IPT, the Government introduced the exemption. Not only will this new measure make satellite operation cheaper and more accessible to UK spacecraft operators but it will play an important role in attracting more businesses involved in the spacecraft industry to the UK. It will also bring insurance for the spacecraft industry into line with the other existing IPT exemptions for commercial aircraft and shipping, which are similarly internationally competitive.

A spaceport in the UK?

A spaceport in the UK?

The UK Government has concluded a preliminary report on potential sites for a UK spaceport. This could be an incredible step for the UK, as to our knowledge no other European country is looking into a commercial spaceport, however the timescale seems vague, and it’s not clear yet what resources have been devoted to this.

POTENTIAL SITES

  • Campbeltown Airport
  • Glasgow Prestwick Airport
  • Llanbedr Airfield
  • Newquay Cornwall Airport
  • RAF Leuchars
  • Stornoway Airport

The report made it clear that a coastal site was favoured and the report can be read below

uk-spaceport-government-response