My Lords, with the leave of the House, I shall repeat a Statement made in another place by my honourable friend the Minister of State for Universities, Science, Research and Innovation. The Statement is as follows:

“With permission, Mr Speaker, I will make a Statement today on a key development in United Kingdom space policy. As a result of announcements made this week the UK will for the first time ever be able to launch satellites from its own soil. This is a development the whole House should welcome and celebrate.

The space sector is changing globally and at a pace never seen since the race to the moon. It is allowing us to answer questions about ourselves and the universe that curious minds have debated for centuries, but it has also seen the development of technologies that are transforming our day-to-day life on earth. For example, the technology that was developed to provide clean air on the international space station is now being used to control the spread of superbugs in hospitals across the world.

The UK is well placed to be at the forefront of developments in space, and this Government are determined that we take advantage of the vast opportunity available to us as a country. That is why today I met the new NASA administrator, Jim Bridenstine, to discuss UK-US collaboration. We all know that NASA is the biggest space agency in the world, with budgets in excess of $10 billion per year. We discussed how to extend and deepen the opportunities for our two countries to collaborate, especially around the hugely ambitious vision for exploration set out by President Trump.

It has been nearly 50 years since man landed on the moon, and since then we have been no further. Questions remain as to whether or not we are alone in the universe. The UK has been at the forefront of robotic exploration to address this question. Indeed, our space industry built the Mars rover, which will launch in 2020, and I am very excited that later this week I will be able to announce a competition related to this mission.

We want to continue to be at the forefront of the next human exploration missions, working alongside NASA and the European Space Agency. But space is also a fundamental part of our economic future. The UK space sector is growing: it is worth around £13 billion to the economy at current estimates and employs more than 38,000 people right across the country. As set out in the Government’s industrial strategy, we are working with industry to grow the UK’s share of the global space market from 6.5% to 10% by 2030. The sector has grown at an average of over 8% every year over the last decade and three times faster than the average sector over the last five years.

Space is a growth sector not only in its own right but also as part of our critical national infrastructure, underpinning all other key industrial sectors such as agritech, automotive, aerospace, maritime and energy. Our space sector is one of the most innovative in the world. It is a world leader in small satellite technology, telecommunications, robotics and earth observation. For example, we build 25% of the world’s telecommunication satellites, and our universities are some of the best in the world for space science.

This week the UK has seized an opportunity to capture a share of the emerging global market for small satellite launch. The Government are working to create the capability and conditions for commercial spaceflight to thrive in the UK. The Government’s industrial strategy includes support for a £50 million programme to kick-start small satellite launch and suborbital flight from UK spaceports. Funding will be used to support the first launches from the UK and deliver a programme of work to realise benefits across the country.

We have made announcements this week which underpin our commitment to the sector. A £2.5 million grant has been announced for a vertical spaceport site in Sutherland, on the north coast of Scotland. That the first-ever satellite launch from the UK could be from Scottish soil highlights our commitment to the union. With the support of £29 million of industrial strategy funding, Lockheed Martin and Orbex will be the first companies to set up operations in Sutherland delivering capable, commercial and globally competitive small satellite launch services. Not only does the UK have the technical skills and capability but we also have the geography. We are seeing the biggest growth in the sector in small satellites, which are typically launched into polar orbits. This makes the position of the UK a very favourable launch site.

It is not just about vertical launch capability. The Secretary of State for Business, Energy and Industrial Strategy also announced a £2 million fund to help horizontal spaceports to progress their plans from our £50 million industrial strategy-funded UK spaceflight programme. Separately, Newquay airport, Cornwall and Virgin Orbit have signed a memorandum of understanding this week, which is an important and positive milestone towards establishing a leading horizontal commercial launch provider at a UK spaceport.

We cannot underestimate the scale of the opportunity here, from entering new markets such as space tourism, to transforming our intercontinental travel. The Government are not only providing support through funding but putting in place the right regulatory framework to enable commercial success. I am pleased that the Government are not alone in recognising this opportunity. Up and down the country, ambitious local authorities and private investors are coming together to help build our space capability. The rapid growth at the Goonhilly site in Cornwall is further evidence of the excitement in the sector.

As technology evolves and reduces the cost of access to space, there is an exciting opportunity for the UK to thrive in the commercial space age. A sector deal for space aims to build on our global leadership in satellites and applications using space data to create a hub in the UK for new commercial space services. Following the sector’s publication of its prosperity from space proposal in May, we intend to work with the sector to explore how a sector deal can drive forward the Government’s industrial strategy. We are also developing world-class facilities, including the National Space Propulsion Facility in Westcott and the National Satellite Test Facility in Harwell, as well as business incubators in more than 20 locations to support British start-ups hoping to grow into successful space companies.

The whole of government recognises the strategic importance of space and the immense economic opportunities it can bring. In a week where the focus of this House has been on the process of withdrawal from the EU, it is important to recognise that space is an area where we are leading new international partnerships. This is nowhere better evidenced than in our international partnerships programme delivering tele-education and telemedicine, which provides the backbone of future economic growth. One programme alone reached 17,000 students in Kenya, with a 95% improvement in learning outcomes. This Government are determined that UK companies are at the forefront of this space revolution and that our economy and the people of this country all benefit. I commend this Statement to the House”.

My Lords, that concludes the Statement.