Scotland’s ‘first mover advantage’ in orbital launch is in danger of being lost due to fierce international competition and a relative lack of public investment, according to a new report from the House of Commons Scottish Affairs Committee.

Arguing that the UK Government must go ‘further and faster’ to help Scotland establish itself as a leader in space launch, the Committee’s report said that it is ‘clear that the UK is falling behind its European counterparts’, leaving Scottish spaceports at a disadvantage despite the country’s widely recognised potential within space.

Scotland is well-placed to become a key player in the growing small satellite launch sector, with firms like AAC Clyde Space, Alba Orbital and Craft Prospect driving the industry. 

Added to that, the Committee said that the country’s geographical advantages and existing satellite manufacturing sector give it an advantage over European competitors in building end-to-end launch services.

While these advantages are reflected by the fact that five of the UK’s seven developing spaceports are located in Scotland, most prominent among them being SaxaVord in Shetland and the Sutherland Spaceport, the report warned that the country’s launch sector faces fierce European competition – particularly from Scandinavia.

Both Andøya Spaceport, based at the Andøya Space Centre in Norway, and Esrange Space Centre, based in Sweden, are aiming to achieve Europe’s first orbital launch, backed by more investment than Scotland typically enjoys from the UK Government.

The report found that although the UK and Scottish Governments have invested a combined £134 million in the sector since 2019, this is comparatively low when measured against higher investment by other European nations, with concerns raised during the inquiry that more public support will be needed to bolster Scotland’s launch sector in an increasingly competitive market.   

One Scottish space firm, Orbex, told MPs that both it and the wider sector face disadvantages compared to European partners, who receive more government support, with the company saying that “a modest increase in UK Government investment in space can take the sector a long way”.

This could prove vital to Scotland’s ability to provide full end-to-end launch services. The report highlights research by the UK Government, which found that most commercial customers want operators to have a track record of at least 3-5 successful launches, but building this capability will take more resources than are currently on offer.

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To remedy this, the Committee is urging the UK Government to move away from ad hoc grants and commit to a long-term, sustained investment strategy for the sector. 

Once launch has been achieved, MPs also recommend that the Government becomes an ‘anchor customer’ of Scotland’s launch providers to ensure their financial viability while building up a stable of clients, arguing this would ‘send a clear signal of confidence and stability’ that the sector can scale and attract international customers.

“Scotland has real potential to become a leader in space launch, which space ports such as SaxaVord in Shetland are well-placed to seize. The economic benefits of this would be huge, but it’s a time-sensitive opportunity we’re in danger of missing,” said Patricia Ferguson, chair of the Scottish Affairs Committee.

“We’re urging the UK Government to commit to sustained financial backing of the sector, and move towards long-term, co-ordinated investment that can match the fantastic ambition and momentum demonstrated by the sector.  

“Our report sets out ways to do this that can not only provide the confidence and clarity that the industry really needs to scale up, but also position the UK as a serious contender on the global launch stage.”