All operator licences issued under the Space industry Act 2018 will contain a limit of operator liability with respect to claims under section 34 and 36 of the Space Industry Act.

The Government intends to calculate launch liability limits using the Modelled Insurance Requirement (MIR) approach. This will tailor the insurance required to the risk and the diverse range of UK launch activities today and anticipated in the future and reduce operator costs in general compared with a fixed limit.

For orbital operations, the limits of operator liability for licences under the Space Industry Act will mirror those for licences issued under the Outer Space Act 1986:

• For standard missions, the lability limit will be set at €60 million.
• For high risk missions the liability limit will be set on a case-by case basis, following an appropriate risk assessment.

Operators will therefore not be facing unlimited liability for actions carried out in compliance with the Space Industry Act 2018 and licence conditions.

The Government will limit launch liability limits using the Modelled Insurance Requirement (MIR) approach. This will tailor the level of insurance required and the limit of operator liability to the risk and the diverse range of UK launch activities today and anticipated in the future and reduce operator costs in general compared with a fixed limit.

For orbital operations, the limits of operator liability for licences under the Space Industry Act will mirror those for licences issued under the Outer Space Act 1986

• For standard missions, the lability limit will be set at €60 million.
• For high risk missions the liability limit will be set on a case-by case basis, following an appropriate risk assessment.

It is the Government's intention that all operator licences issued under the Space Industry Act 2018 will contain a limit of operator liability with respect to claims under section 34 and 36 of the Space Industry Act. The Government does not intend to make changes to the primary legislation around liabilities and insurance in the Space Industry Act (2018) at this time, as the regulations and guidance laid before Parliament on 24^th May 2021 contain the necessary provisions to enable implementation of the Government policy that all operator licences will contain a limit of liability.

However, the Government outlined in its response to the consultation on the draft Space Industry Regulations issued on 5^th March 2021 that if suitable primary legislation is brought forward, the Government may seek to amend the wording in section 12(2) of the Space Industry Act 2018 from "may" to "must".

The Government is committed to supporting the space sector and we have outlined our intention to establish a committee involving industry and the spaceflight regulator; this will keep the regulations under review and ensure that the Government’s approach to commercial spaceflight remains current, relevant, and effective.

The Government conducted a call for evidence in March 2018. The evidence gained through this exercise and through further independent research commissioned by the Government has led Ministers to conclude that limits of liability are justified. The Government intends to calculate launch liability limits using the Modelled Insurance Requirement (MIR) approach. This will tailor the amount of insurance required and limit of operator liability to the risk and the diverse range of UK launch activities today and anticipated in the future and reduce operator costs in general compared with a fixed limit.

The Government does not yet have the information to determine whether a maximum limit on the insurance requirement and limit of operator liability for the amount calculated under the MIR for launch is justified as licence applications have not yet been received. It is the Government’s intention to establish a committee involving industry and the spaceflight regulator to keep the regulations under review and ensure that they remain current, relevant, and effective.

For orbital operations, the limits of operator liability for licences under the Space Industry Act will mirror those for licences issued under the Outer Space Act 1986.

• For standard missions, the limit will be set at €60 million.
• For high risk missions the limit will be set on a case-by case basis, following an appropriate risk assessment.

There is no expectation that upper stage debris from any UK launch will affect the sovereign territory of any Scandinavian country.

The Government has held discussions with all countries to the north of the British Isles which may hold an interest in, or whose territory may be affected by, space launch activities undertaken from the UK.

Where there is a possibility of UK-based launch companies seeking to deposit launch vehicle debris (whether this is from the vehicle's upper stage or otherwise) in another state's territorial waters or Exclusive Economic Zone, the government intends to obtain consent from the affected countries.

The UK Space Agency is monitoring progress across all potential UK spaceports, and are aiming for the first UK launches to take place in 2022.

UK Space Agency awarded £7.35m to Virgin Orbit to support their plans to launch from Cornwall, with the spaceport being delivered separately by Spaceport Cornwall. The UK Space Agency engage regularly with Cornwall Spaceport as part of their oversight of the Virgin Orbit grant and they have recently finalised their Airport Development Implementation Plan for approval. Once approved, works can commence on airport development to meet the requirements for launch operations.

The Government also provided £2.5m to Highlands and Islands Enterprise (HIE) to develop Space Hub Sutherland in Scotland, and £5.5m to Orbex to build a new rocket to launch from Sutherland. HIE have successfully secured planning approval from Highland Council, and Orbex are making good progress with developing their launch vehicle.

We are committed to establishing a commanding lead in space and other industries of the future. My Rt hon Friend the Prime Minister has established a National Space Council to deliver this ambition.

We are investing in the next generation of satellite technologies, backing exciting new spaceports in Scotland and Cornwall, and using UK space expertise to tackle climate change.

Proceeds from those launches will be limited to any charges for licensing (although the Government is not proposing to cost recover for three years) which will be used to cover costs of licensing, and associated taxes.

The Agreement creates no limitation on the Government continuing to provide funding for the development of domestic space launch companies through other means.

The Technology Safeguards Agreement (TSA) is a legally binding bilateral treaty with the United States of America and is subject to 21 sitting days scrutiny under section 20 of the Constitutional Reform and Governance Act 2010 (CRaG).

The Command Paper along with the Exchange of Notes for the TSA and Explanatory Memorandum was published and E-laid before Parliament on 16 October 2020.

The TSA will not enter into force until the enabling legislation (the Space Industry Regulations, published for public consultation on 29 June 2020) is in force, the CRaG scrutiny procedure has completed and following an exchange of notifications between the Parties confirming that all domestic procedures and requirements necessary for the Agreement’s entry into force have been fulfilled.

The Government plans to realise its obligations under the Agreement through the Space Industry Regulations, published for consultation on 29 July 2020 and licence conditions for operators. Regulations 180-181 of the Draft Space Industry Regulations address segregated areas and highlight that the area remains designated as segregated only if there is US technology in that area.

Assessments are made on a case-by-case basis by the relevant UK Government departments and agencies.

The Government and its regulatory authorities already work closely with UK companies, and in the future will work with UK based launch operators, to understand the nature and degree of any inputs of equipment, technology, manpower, or funds from countries, in this area especially by those which are not partner members of the Missile Technology Control Regime.

This is in line with the UK’s existing international commitments under the Missile Technology Control Regime, the Hague Code of Conduct and other international non-proliferation instruments.

The Government will follow the definition contained in the Agreement.

The definitions in the Agreement are designed to capture all possible business and operational models for UK based launch operators and were drafted to enable maximum flexibility for UK companies.

There are over 100 companies and research institutions in the LaunchUK Industry Group.

The US-UK Technology Safeguards Agreement (TSA) is a legally binding bilateral treaty with the United States of America and is subject to 21 sitting days scrutiny under the Constitutional Reform and Governance Act (CRaG). The Command Paper along with the Exchange of Notes for the TSA and Explanatory Memorandum was published and E-laid before Parliament on 16 October 2020.

Companies which are likely to be affected by the provisions in the TSA were consulted prior to and throughout its negotiation, both through the LaunchUK Industry Group and in direct consultations. The Agreement will not place any undue limitations on UK-based companies; indeed, it is expected to open new opportunities for them while meeting the UK’s counter-proliferation obligations.

The draft Agreement was signed by the US and UK governments on 16 June 2020 and will be subject to scrutiny and ratification by Parliament. It will be laid in Parliament after enabling legislation is in force, and the Agreement will be published as soon as practically possible thereafter.

Regular engagement with UK based commercial space industry was undertaken over a three-year period prior to the signing of the US-UK Technology Safeguards Agreement. This included direct consultations with companies and presentations to industry groups. Companies provided valuable advice which informed the negotiations.