Will taxpayers get their satellite bailout money back?

When the British government spent £400 million on the satellite internet start-up OneWeb back in 2020, it was seen as precisely the kind of active, tech-led industrial strategy that could re-boot the British economy. There were hopes the deal would help secure a place for the UK at the heart of the emerging space economy. Then prime minister Boris Johnson saw it as a key part of launching ‘Galactic Britain’. But four years on, the taxpayer is on the hook for a £300 million paper loss after shares in OneWeb’s parent company sank to a record low.

Even by the standards of government investment, the money poured into OneWeb has proved to be remarkably poor value. After the British government’s investment rescued OneWeb from bankruptcy, the company subsequently merged with Paris-listed space business Eutelsat. It was hoped that the mega firm could become a European rival to SpaceX’s Starlink satellite internet service.