According to a Member of Parliament, the United Kingdom’s space sector could experience an increase in jobs and investments if Parliament approves a liability cap for companies that launch spacecraft. John Grady, a Labour MP, stated that the existing laws are serving as a deterrent to potential investors, and a legal limit on liabilities would shield companies from expenses arising from accidents or property damage.
The MP for Glasgow East has introduced the Space Industry (Indemnities) Bill, which aims to establish a solid liability cap by modifying the legislation from 2018. This bill is set to be reviewed during its second reading on Friday.
Grady’s initiative aligns with industry demands for legislative certainty, as unlimited liabilities have been a barrier to securing insurance and financing for space ventures.
The UK space sector, valued at over £17.5 billion and employing more than 48,000 people, could benefit from reduced regulatory risks and increased competitiveness on the global stage.
Amending the Space Industry Act 2018 and making it mandatory for operator licences to include a liability cap would align the UK with other major space nations like France and the USA, which already limit liabilities.
This change is seen as crucial for fostering a thriving space sector, as it would facilitate access to insurance and financing, thereby supporting innovative companies.
The bill’s progression through Parliament is part of broader efforts to enhance the UK’s space sector, including the UK Space Agency’s consultation on variable liability limits for orbital operations. This approach aims to tailor liability limits to different mission profiles, promoting sustainability and reducing regulatory burdens.
