UK: Space spending to be increased by £60m a year

Investing in space technology is seen as one path
to re-balance the British economy

Chancellor George Osborne has increased spending on space technology by £60m per year over the next two years.

The investment is part of a plan to increase the UK's contribution to the European Space Agency.

The government hopes this will attract more hi-tech jobs and contracts to Britain.

Overall spending in civil research has, however, declined by 5% in real terms since 2010 - a reduction which is set to continue.

Mr Osborne made the announcement in a speech to the Royal Society, calling for a national debate on where the UK can lead the world in scientific excellence.

The European Space Agency (Esa) investment will lift UK's contribution to the Paris-based organisation by an average of 30% at a time when many other nations are struggling to meet their contributions or even reducing them.

By increasing its contribution, the expectation is that the UK will get more research contracts in return and this will increase the competitiveness of British space companies, enabling them to win future orders in what is a growing global market for products and services.

Recent data have shown that the UK space industry recorded a total turnover of over £9.1bn in 2010/11, representing an average annual growth rate of 7.5% since 2008/09.

While other sectors have shrunk during the recession, these figures gave Science Minister David Willetts powerful ammunition to persuade the Treasury to back space as a key sector for further growth.

- BBC.co.uk