Bill to create UK space licensing and regulatory framework published

The Space Industry Bill, which was announced in the Queen's Speech, will "help make the UK the most attractive place in Europe for commercial launch", according to science minister Jo Johnson. It includes new powers to license a wide range of spaceflight activities, backed by regulatory, security and safety measures.

The UK space sector has been growing at an annual rate of 8% over the last decade, and the government is targeting a 10% share of the global space economy by 2030. Associated technologies including small satellite launch and sub-orbital flight are estimated to be worth over £25 billion globally over the next 20 years, according to the government.

The bill, if passed in its current form, would give the government new powers to license a wide range of commercial spaceflight activities including vertically-launched rockets, 'spaceplanes', commercial satellites, spaceports and other technologies. It would also create a "comprehensive and proportionate" regulatory framework to ensure that commercial spaceflight in the UK remains safe and manage associated risks.

The bill contains a number of measures which would regulate unauthorised access and interference with spacecraft, spaceports and associated infrastructure, drawing on the UK's extensive expertise in aviation security. It would also create new regulatory requirements covering operational insurance, indemnity and liability.

UKspace, the trade body for the UK space industry, described the introduction of the bill as "a major milestone for the UK's spaceflight ambitions".

"It is a crucial step towards the creation of an enabling regulatory framework, which is essential for companies to launch small satellites and operate sub-orbital spaceflights from UK spaceports," it said in a statement.

"With this bill, the government is sending a clear signal to entrepreneurs, investors, scientists and engineers that the UK is committed to becoming the most attractive destination in Europe to participate in commercial spaceflight and set up a space business," it said.

The results of a £10 million funding competition announced in February by the UK Space Agency are due to be announced next month. Grants will be made available for the most feasible projects put forward by consortia of potential UK spaceports and satellite or flight operators.

"It is good news that the new government has continued to give parliamentary priority to this important bill for the space sector, which is a big step forward for spaceport and launch vehicle operators, satellite companies and the wider supply chain," said infrastructure planning law expert Richard Ford of Pinsent Masons, the law firm behind Out-Law.com. "This is especially important given the ongoing funding competition for the sector run by the UK Space Agency."

"The government has responded to select committee recommendations on the bill and clarified its approach on some important matters. In relation to the key question of the liability cap, and compatibility with the 1986 Outer Space Act liability caps to be specified in licences, the government has said that this will be subject to more detailed consultation and guidance will be issued as to the discretion to be applied to caps. So, for now, there is no certainty of a liability cap in the interests of not binging future operational policy decisions. Until such guidance is produced, this will lead to uncertainty as to the insurance market obviously," he said.

"In relation to the concern as to flexibility about who requires licences for which activities – for example, the spaceport operator, the spacecraft operator or the satellite operator - the government has also said flexibility is required and the regulator will have a high degree of discretion. Further regulations and guidance will be needed, as well as some live examples, to see how this develops in practice. In the meantime, the licence requirements for each mission step will need careful scrutiny," he said.