Third Report - Defence Space: through adversity to the stars?

Recent years have seen welcome, if only partially successful, attempts to bring more coherence to space activity both across Whitehall and within the Ministry of Defence. The creation of the National Space Council and the MoD’s Space Directorate were recognised by witnesses as being positive developments in this regard. As we came to the end of our inquiry, we were therefore both surprised and concerned to note that the Government has removed the National Space Council from the list of Cabinet Committees, and that the Space Directorate looks set to be disbanded. In its response to this report the Department must provide an explanation for these changes. It should set out what new governance arrangements have been put in place and why it believes they will be more effective at swiftly implementing the vision set out in the National and Defence Space Strategies.

Even before these recent developments, which seem to be a backward step, cross- Whitehall governance on space lacked sufficient clarity and direction. The delays to publication of the National and Defence Space Strategies frustrated industry and other stakeholders and suggest that despite the previous Prime Minister’s stated personal commitment to making the UK “a meaningful player in space”, the Government is currently unable to drive changes through at pace, or even to meet its own deadlines. Nowhere is this better illustrated than by the continued delay and inertia surrounding space-based position, navigation and timing services, which we examine in detail later in this report.

Vision must be backed up with delivery, and with space set to become ever more critical to the national interest it is clear that stronger, more cohesive leadership is required. We recommend that a Minister for Space should be appointed within the Cabinet Office to provide clear centralised direction and accountability in taking forward the UK’s civil and defence ambitions in space. This new position must be sufficiently resourced and should be given appropriate authority to effectively co- ordinate and drive forward policy and delivery. (Paragraph 29) Skills and recruitment

There is a clear challenge for the Government in addressing skills shortages and recruitment and retention difficulties in the space sector. Meeting this challenge will require a long-term, holistic approach to education and workforce development. Encouraging an interest in STEM subjects and space careers from a young age will be vital.

Defence faces particular challenges in recruiting and retaining space specialists. We were encouraged by the Minister for the Armed Forces’ support for a more flexible approach to recruitment and career management within Defence, and we support the use of secondments to and from industry. But changes must be made at pace if we are not to fall further behind both our adversaries and our peers. (Paragraph 44) Defence Space: through adversity to the stars? 37

Space literacy must also be embedded across Defence if multi-domain integration is to succeed. As well as establishing a Space Academy for defence space specialists, the MoD must ensure that wider professional military education comprehensively covers the role played by space in modern warfare. In its response to this report the Department should update us on its progress towards establishing a Space Academy and should set out target dates for the inclusion of space education on staff courses and across the Defence Academy curriculum. (Paragraph 45) Threats and Hazards

The response to Russia’s invasion of Ukraine has underlined the importance of the international community taking a united approach in the face of irresponsible and aggressive behaviour. We welcome the UK’s leading role at the United Nations in seeking to achieve a consensus on responsible norms and behaviours in space and we support and encourage the Government in continuing to drive this work forward. An update on progress to date should be included in the Department’s response to this report.

Space Domain Awareness capabilities are rightly recognised by Government and stakeholders as being critical to safely operating in an increasingly contested and congested space environment. A cross-Government SDA strategy should be produced and implemented as soon as possible: the Department should confirm in its response to this report that work on this is already underway and should give a target date for its publication. A cross-Government SDA strategy should be produced and implemented as soon as possible: the Department should confirm in its response to this report that work on this is already underway and should give a target date for its publication.

Considered and strategic investment in the UK’s SDA capabilities offers an opportunity to improve the UK’s standing and contribution to Allied defence space efforts. The Department should set out how it will ensure that the Defence Space Strategy’s promised investment in Space Domain Awareness maximises the advantages offered by the UK’s existing pockets of expertise and the location of its Overseas Territories. (Paragraph 73) Position, Navigation and Timing

The events surrounding the UK’s expulsion from the EU’s Galileo programme were deeply unsatisfactory and demonstrated a failure of statecraft on all sides. The European Commission’s decision was deeply regrettable given the extensive contribution, including financing of £1.2 billion, that the UK had made to the Galileo programme since its inception.

Against this backdrop of political failure, it is simply unacceptable that almost four years on, and with tens of millions of pounds spent, the Government appears no closer to coming to any conclusions about development of the UK’s own space- based Position, Navigation and Timing (PNT) capabilities. Most recently the Space Based Position, Navigation and Timing Programme (SBPP), led by the UK Space Agency, seems to have disappeared without a trace. Given the vital need for a 38 Defence Space: through adversity to the stars? resilient PNT network both for Defence and for other aspects of Critical National Infrastructure we are deeply concerned by the complacent attitude towards PNT within Government, and by the seemingly low priority which the MoD attaches to this work. Government must publish the conclusions of the SBPP and should set out a clear timetable for producing and taking forward the UK’s PNT strategy in its response to this report. (Paragraph 84) Sovereignty and collaboration

The Ministry of Defence will have to carefully balance competing priorities in determining which defence space capabilities must be “owned” by Government and which can be provided by collaboration with Allies or through a commercial contract. Russia’s recent impounding of OneWeb satellites at the Baikonur cosmodrome demonstrates the potential dangers of making the wrong call, and the subsequently announced proposed merger of the OneWeb with Eutelsat has raised further questions concerning sovereignty and national security. The planned merger between OneWeb and Eutelsat must be subject to the most stringent scrutiny under the National Security and Investment Act. More broadly, it is critical that decisions affecting the sovereignty of the UK’s defence space capabilities are made transparently. The MoD should confirm in its response to this report how it plans to make details of these decisions available for scrutiny by Parliament. (Paragraph 102) The UK’s Defence Space Capabilities: Opportunity and Challenge

The investment in new space capabilities set out in the Defence Space Strategy, and the procurement of the next generation of Skynet communications satellites, will provide a clear opportunity for the MoD to make a positive long-term impact on the sustainability and productivity of the UK’s space industry. The Department should explain in its response to this report how it will ensure that its investment in the sector maximises benefits to the UK by growing and sustaining a skilled workforce, attracting investment, rewarding innovation, providing meaningful engagement with SMEs and adding social value. The Department should also provide an update on Skynet 6, including expected contract award dates for the Service Delivery Wrap and Enduring Capability strands of the programme.

In order to meet the challenges posed by the rapid pace of technological advancement in the space domain, the MoD will need to take every opportunity to learn from the experiences of Allies. The pioneering approach taken by the US Space Development Agency will be of particular relevance.

Space acquisitions require an innovative and flexible approach to procurement, but the MoD will need to balance this against ensuring value for money for the taxpayer. This will not be an easy task, and the Department’s endemic failure to robustly manage major projects does not inspire confidence that they will be able to meet this challenge. The Department must meet its commitment to set out clear milestones for the significant infrastructure projects announced in the Defence Space Strategy by the end of this financial year. Timescales should also be included, and progress should be reported every six months. We will write to the Comptroller and Auditor General asking him to increase his oversight of these new projects to provide Defence Space: through adversity to the stars? 39 additional assurance and we intend to scrutinise their progress closely. In this emerging domain the Ministry of Defence has a real opportunity to learn from its past failings: history must not be repeated. The Department must meet its commitment to set out clear milestones for the significant infrastructure projects announced in the Defence Space Strategy by the end of this financial year. Timescales should also be included, and progress should be reported every six months. (Paragraph 122) 40 Defence Space: through adversity to the stars?