UK space law: Introduction to our new space law series

A journey towards lift-off: An overview of the industry and the legislative foundations of the UK space sector

“For the wise man looks into space and he knows there is no limited dimensions.” - Zhuangzi 369 BC - 286 BC

Space and all its tantalizing prospects has been the subject of humankind’s gaze for millennia, but the last 15 years has seen the advent of a blossoming global space economy. In addition to high-profile projects such as programs to revisit the Moon and land on Mars, there has been an expansion with the privatisation of satellite delivery and the development of space tourism, which are all contributing to a huge uptick in commercial activity in the space sector and related industries. The space sector involves a multitude of varied business from the high-profile rocket launchers to specialist smaller businesses developing space hardware and software and related space services such as traffic and debris detection systems – all looking to expand our horizons.

Against this backdrop of numerous stakeholders, it is reported that the global space economy is projected to reach £490bn by 2030 and £1tn by 2040, with the United Kingdom’s (UK) own Space Agency commissioned report estimating the UK space industry income in 2023-24 to be £18.9bn. It is clear the sector is on a significant trajectory with heightened importance in the modern economy. Historically the sector has been dominated by the United States of America and Russia, however, the sector now boasts a plethora of private enterprises based amongst the new spacefaring nations. Looking forward, the space sector is seen as one of the most exciting areas of growth whilst also remaining one of the most complex and extensively regulated areas.

In this series of articles, we look at some recent developments and key considerations for those operating in the sector:

1. The journey towards lift-off: An overview of the industry and the legislative foundations
2. Introducing the UK’s new spaceports: A quick guide of the current spaceports in the UK and their launch capacity
3. What is a spaceport: A review of the Space Industry Act 2018 (SIA)
4. Key provisions for spaceports: A review of the supporting regulations
5. Disputes in space: An overview of dispute resolution in the space sector

The journey towards lift-off

Following the general election, the European Space Agency unveiled plans at Farnborough Airshow that it plans to expand its presence in the UK with additional funding for space programs. Alongside this announcement, the UK Space Agency has announced further funding for space related training programs and both agencies are exploring the potential for setting up a space quantum technologies laboratory in the country.^[1]

What has been clear to those following the industry, is that space has become an increasingly important part of the country’s economic strategy over the past decade. Whilst the new government has not yet set out its plans, there is every indication that the sector will continue to grow in strategic importance.

So, how did the UK get to this position, where commercial space launches are soon to become a reality within our UK borders? The answer, the finalisation of critical regulations to govern such activities and allow business to lift-off!

1. Prior legislation

Outer space activities were originally governed in the UK by the Outer Space Act 1986 (the OSA).^[2] The OSA sought to ensure compliance by the UK with its international obligations in relation to the use of outer space, including liability for damage caused by space objects and the registration of space objects. Since 31 July 1989, the OSA has formed the original basis for the regulation of outer space activities carried out by organisations or individuals established in the UK, its overseas territories, or Crown dependencies.

Until recently, the UK’s space ambitions were relatively modest and primarily involved the launch of satellites at overseas spaceports. However, this all changed on 1 April 2010 when the UK Space Agency was established and, the following year, the government proposed reforms to the OSA to enable the domestic space sector to better compete with its international competitors. In 2014, the government began expressing interest in sponsoring the development of a British spaceport. It subsequently began developing legislation to create a regulatory framework to enable these ambitions to become a reality.

2. Current legislation

In 2017 the Space Industry Bill was introduced, receiving Royal Assent the following year to become the Space Industry Act 2018 (the SIA). The SIA came into force in July 2021 and operates in conjunction with the OSA. It has been described by the government as “a major step towards establishing a flourishing space industry in the UK, with a modern, safe and supportive regulatory framework”. The SIA exclusively governs space activities carried out within UK borders, with the OSA limited to space activities carried out by UK entities overseas.

The SIA regulates activities carried out in the UK, including:

• Launch (space or sub-orbital) and return
• The procurement of a UK launch (space or sub-orbital)
• The operation of a satellite in orbit from a UK facility
• The operation of a spaceport in the UK
• The provision of range control services in the UK

As has been the case under the OSA, licences need to be procured for space activities governed by the SIA. The Civil Aviation Authority is the sole regulator responsible for the charging of fees for licences issued wholly under the SIA.^[3],^[4] While the UK Space Agency is responsible for the charging of fees for licences issued wholly under the OSA. Those wishing to carry out any such activities are required to obtain a licence, for a fee of £6,500, from either the Civil Aviation Authority, or UK Space Agency on behalf of the Secretary of State.^[5]

3. What were we waiting for?

While there was nothing standing in the way of spaceport construction (there are, in fact, seven currently under development in the UK which we shall explore in our second article in this series), commercial space activities from such ports were not able to take place until the regulations associated with the SIA were finalised. The Space Industry Regulations 2021^[6] were introduced to enable launches by licensing and regulating spaceflight activities, spaceports and range control services in the UK and was the product of a build-up starting back in 2020, when the government ran two consultations in relation to them:^[7]

• A general consultation, from 29 July 2020 to 21 October 2020, to seek views on the draft regulations and guidance documents needed to operate a spaceport or to carry out spaceflight activities from the UK.^[8]
• A second consultation, from 13 October 2020 to 10 November 2020, on the draft insurance proposals and liabilities regulations needed for the SIA.^[9]
• On 5 March 2021, the government published the joint outcome and summary of responses for both consultations.^[10] Responses were received from all the expected respondents (including prospective licensees, insurers and financiers), as well as some unexpected respondents (school children excited to learn more about regulation of the space sector) and were largely supportive of the proposed regime.

Following the above, the Space Industry Regulations 2021,^[11] Space Industry (Appeals) Regulations 2021,^[12] the Spaceflight Activities (Investigation of Spaceflight Accidents) Regulations 2021^[13] and the Contracting Out (Functions in Relation to Space) Order 2021^[14] were brought into force on 29 July 2021.

Overall, the legislation now in place provides the necessary framework to enable the UK to be the first European country to launch spacecraft and satellites from its home soil. So far, we have only had the ill-fated debut of the Virgin Orbit launch from the southwest of England in 2023.^[15] However, the successful start-up of the Scottish spaceport at SaxaVord may see the first launch here this autumn. With further launches being scheduled across the UK, it is hoped that this will allow us to see emerging space activity including sub-orbital space tourism and, eventually, new transport systems such as hypersonic flight from UK space launches. With regulations now passed, UK spaceflight has been given the go for lift off!