I beg to move,
That the Committee has considered the draft Space Industry (Licence Exemption for Military Activities of Allies) Regulations 2025.
It is an honour to serve under your chairmanship, Ms Furniss. The first duty of Government is to keep the country safe. National security is the underpinning of the Government’s plan for change. As the Secretary of State has made clear, the threat to the UK is increasing, with growing instability around the globe and growing Russian aggression. Missile defence is a critical thread in our tapestry of national security.
We test and train regularly with our allies, and our next missile defence testing and training exercise, code-named Exercise Formidable Shield, is in May 2025. Formidable Shield is a US-led exercise and will be hosted by the UK Government at the Ministry of Defence’s Outer Hebrides air weapon range on behalf of NATO and our defence partners. It is one of the most advanced and comprehensive missile defence training exercises in the world. It involves the UK and allied forces conducting live fire drills, missile defence tests and real-world, scenario-based training.
These activities are critical to the defence and security of the UK and the strength of our military alliances. First, they enhance interoperability. Exercise Formidable Shield will bring together 10 nations, each with distinct systems, targets and technologies. It will allow us to align these different systems and work in concert effectively in real-world operations, so the UK and our allies can respond quickly and cohesively to any threats.
Secondly, Formidable Shield improves our collective missile defence capabilities and our ability to adapt to evolving ballistic missile and other threats. With global tensions rising and missile technology advancing, it is essential to refine and improve our strategies continually to protect the nation. This is why the live fire element of Exercise Formidable Shield is particularly valuable.
Thirdly, Exercise Formidable Shield reinforces strategic deterrence, which is vital in maintaining stability and preventing conflicts from escalating. The exercise sends a strong message to our adversaries that the UK and NATO and its allies are prepared to defend ourselves and our territories against any form of aggression.
To replicate operational conditions for these exercises, the UK and allied nations need to operate ever-more sophisticated defensive missile systems capable of climbing above the stratosphere. That would bring them within the scope of the licensing regime in the Space Industry Act 2018 and its associated secondary legislation. The 2018 Act was never intended to regulate military activity. It was passed into law to ensure the safety and appropriate governance of the commercial spaceflight industry, and is regulated by the Civil Aviation Authority.
The Government seek a licensing exemption under the 2018 Act and its associated secondary legislation for allied armed forces activities. This exemption is very narrow. It only allows allied armed forces, their operatives and international military organisations such as NATO to fire sub-orbital—in other words, non-orbiting—uncrewed rockets from MOD sites or platforms with MOD permission and under the control of the MOD’s regulator.
The exemption will bring multinational exercises in line with sovereign ones. Similar stratospheric tests conducted solely by the MOD are not affected by the 2018 Act and its accompanying licensing regime on the basis that, as a matter of statutory interpretation, the Act does not bind the Crown.
Exercises above the stratosphere that are exempt under this instrument will be under the expert supervision of the defence regulator that has monitored military activities for decades, including MOD rocket launches above the stratosphere. Unlike the civilian authorities, the defence regulator has the infrastructure and expertise to oversee the safety of these exercises properly. The regulations will therefore avoid putting increased bureaucracy or a new burden on the civil authorities.
This instrument will apply to England, Wales, Scotland and Northern Ireland. It is subject to the affirmative procedure as set out under section 68(6) of the 2018 Act.
The UK’s missile defence capability is a critical component of national and global security, but as with all defence capabilities, to be effective, it must be constantly maintained, updated, exercised and tested. Exercise Formidable Shield, which is planned for May 2025, is the next essential opportunity to conduct live fire drills, missile defence tests and real-world, scenario-based training.
An enormous amount of military planning has gone into the exercise from all nations involved, and the Government seek appropriate regulatory certainty by the end of February to get the maximum value from it. Approving this exemption in a timely manner will send a clear signal that the UK Parliament is united in defence of our national security, united against our adversaries and united in its support for NATO.