British businesses, universities, and researchers can now apply for more than £62 million in government funding to develop domestic satellite communications and space technologies.
Ministers say the investment is necessary to prevent the UK from becoming dangerously reliant on foreign providers for capabilities it cannot do without.
The package allocates £42 million to new British satellite communications technologies and £20 million to space innovation projects spanning industry and academia.
The £42 million will be distributed through the third round of the Connectivity in Low Earth Orbit programme, open to UK businesses, universities, and research organisations.
Eligible projects must target at least one of five areas: on-board processing, active antennas, optical links, networking and routing, or user terminals.
This round brings total programme funding to UK organisations to as much as £77 million.
Commercial interest in the sector is already strong. A Reading-based start-up recently raised £13.8 million to build satellites for very low Earth orbit, recruiting engineers from leading global space programmes.
The remaining £20 million will be delivered through a new space innovation programme, with projects scheduled to begin in April 2027.
Funding will follow two routes: early-stage concept development and larger commercialisation efforts for growing businesses.
Up to 40 per cent of the budget is reserved for space domain awareness and in-space assembly and manufacturing, areas deemed critical to the UK's ability to detect and respond to orbital threats.
A third initiative, the Space Clusters Infrastructure Fund, will open a funding call in autumn with £37 million in grants available by 2030.
The announcement coincides with evidence that early-stage support is yielding results. A new report shows an accelerator programme has backed 289 founders since 2021, helped secure £102.2 million in investment, and created 209 jobs.
Eighty-nine per cent of the supported businesses remain active.
Industry observers note the funding is overdue, given that the UK has lagged behind European partners in space investment.
They argue that early-stage backing allows innovators to develop and commercialise technology while strengthening intellectual property within the UK.
For founders, the path is clear: satellite communications and innovation calls are open now, with infrastructure funding to follow in autumn.
