£30m government funding for UK satellite comms
March 6, 2026



British companies developing satellite communications technology are to receive £30 million (€34.5bn) in government funding, Space Minister Liz Lloyd announced this week, as the UK looks to secure a larger share of a global market.

The investment, the second round of funding from the UK Space Agency’s Connectivity in Low Earth Orbit (C-LEO) programme, will help UK firms develop components and technologies for the satellite constellations that are transforming how the world stays connected. These vast networks of satellites, orbiting hundreds of miles above the Earth, deliver high-speed internet, communications and data services to every corner of the globe — from remote rural communities to ships at sea and aircraft in flight.


The government will back new projects to develop advanced technologies that are essential to the future of connectivity. With the global market currently worth around £40 billion and growing at over 10 per cent annually (1), driven by demand for services such as navigation and positioning, broadband internet, weather forecasting, and maritime and aviation tracking, there is a significant opportunity for UK companies to capture a greater share. These technologies are also vital for defence and national security.

Lloyd commented: “Space is now the cornerstone of our modern economy. Satellite constellations have revolutionised how we operate, digitalising industries, optimising logistics and connecting all corners of the globe. This new funding will support the development of smarter satellites with better hardware, the use of AI to make data delivery faster and improved connections between spacecraft. This is part of the government’s commitment to keeping UK companies at the forefront of satellite communications, delivering economic growth and strengthening our defence and national security.”

The new £30 million investment will help companies move their technologies from the testing phase to being ready for use in real missions, positioning them to win future contracts with major satellite network operators.

The programme will support the next generation of advanced satellite capabilities, meaning better services for governments and customers around the globe, enabling faster processing of information, lower latency and greater assurance for where UK data lands and is held, and positioning the UK supply chain at the heart of this step change in space-based capability.