The United Kingdom has unveiled a £500 million spending package aimed at supporting the country’s space sector, including £20 million allocated to accelerate the development of spaceport infrastructure in Scotland.
The funding plan was announced on March 4 during the Space-Comm Expo 2026 by Liz Lloyd, the UK’s Minister for the Digital Economy. The broader investment includes £105 million to develop civil capabilities for in-orbit servicing and manufacturing, £85 million to establish the National Space Operations Centre, and £80 million for the Connectivity in Low Earth Orbit programme.
Speaking at the event, Lloyd said the government intends to strengthen the country’s launch capabilities as part of efforts to secure reliable access to space.
“I want to make funding available for the capabilities, skills, and infrastructure that enable the launch sector to thrive, and so I can announce £20 million to accelerate spaceport infrastructure development in Scotland,” Lloyd said.
Scotland hosts two proposed spaceport developments, including the SaxaVord Spaceport on the island of Unst. The site already has a completed launch pad, supporting infrastructure and a spaceport licence from the UK Civil Aviation Authority. German launch company Rocket Factory Augsburg is currently preparing for the inaugural flight of its RFA ONE rocket from SaxaVord later this year.
SaxaVord has previously received public funding, including £10 million allocated in the UK government’s Spring Budget in 2024. The investment was intended to support the goal of enabling the first orbital satellite launch from the European mainland and positioning the UK as a leading destination for small satellite launches by 2030.
Another project, the Sutherland spaceport in northern Scotland, has faced setbacks. Construction at the site was paused in December 2024 after launch company Orbex redirected funding toward development of its Proxima rocket. The company later entered administration and laid off its workforce, effectively halting the project.
Lloyd said the government remained committed to developing launch capabilities despite the company’s collapse.
While the government is “disappointed” by Orbex’s failure, it does not change the UK’s “ambitions for launch,” she said.
The landowner for the Sutherland site, the Melness Crofters Estate, has begun seeking new partners to continue development. UK launch startup Skyrora has expressed interest in taking over the lease for the project.
The Sutherland initiative has also received public support in the past, including £2.5 million from the UK government in 2018, £3 million from the Nuclear Decommissioning Authority in 2023, and about £9 million from Highlands and Islands Enterprise and the Scottish government.
Separately, the UK still has about €112.3 million in unallocated funding through the European Launcher Challenge. With Orbex no longer participating, Germany’s Rocket Factory Augsburg could potentially receive additional support, though analysts say a larger commitment may depend on the company expanding its operational presence in the UK.
