The UK Space Agency will become part of the Department for Science, Innovation and Technology (DSIT) in a bid to cut duplication, reduce bureaucracy and put public accountability at the heart of decision making.
The new unit will keep the UK Space Agency (UKSA) name and brand and will be staffed by experts from both organisations.
Space Minister Sir Chris Bryant said: "You don’t need to be a rocket scientist to see the importance of space to the British economy. This is a sector that pulls investment into the UK, and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites. The aims for growth and security at the heart of our Plan for Change can’t be met without a vibrant space sector.
"Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector."
UK Space Agency CEO Dr Paul Bate said: "I strongly welcome this improved approach to achieving the government’s space ambitions. Having a single unit with a golden thread through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality.
"In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability."
"We will continue to deliver, while reducing duplication and ensuring we work even more closely with Ministers to support the UK space sector, and the country."