A British space start-up backed by Labour has delayed its inaugural launch and is now seeking further funding, as the UK risks falling further behind in the increasingly competitive space sector. Orbex, which received a £20 million public investment earlier this year, has confirmed that its first test flight from the Shetland Islands is now scheduled for 2026—postponed from its initial 2024 target.
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The company is developing its 62-foot Orbex Prime rocket at a facility in Scotland, designed to launch small satellites into orbit. In a submission to MPs, the firm stated that it is looking to raise an additional £120 million from private investors over the next four years in order to bring its operations fully online. Orbex is also lobbying for increased public backing, including support for a new, larger launch vehicle proposed for the European Space Agency (ESA).
ESA is currently offering up to £144 million through its European Launcher Challenge in a bid to reduce Europe’s reliance on SpaceX. Orbex is pushing for Labour’s proposed £7 billion National Wealth Fund to support British firms in this field, suggesting that public investment could “level the playing field and unlock significant value for the UK economy”.
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The delay comes amid broader struggles for the UK’s emerging space launch industry. Virgin Orbit collapsed following its failed Cornwall launch in 2023, and since then no successful UK-based orbital launches have taken place. Other start-ups, including Germany’s Rocket Factory Augsburg and Scotland’s Skyrora, are also aiming to launch from the Shetland site, though they too have faced technical and logistical challenges. An Orbex spokesperson noted that delays were not unusual given the complexities of licensing and logistics, and emphasised that government backing would be crucial for competing in the European space market.
