{"id":402811,"date":"2026-02-01T20:11:15","date_gmt":"2026-02-01T20:11:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/402811\/"},"modified":"2026-02-01T20:11:15","modified_gmt":"2026-02-01T20:11:15","slug":"space-rocket-company-handed-29million-of-scottish-taxpayers-cash-fighting-for-survival","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/402811\/","title":{"rendered":"Space rocket company handed \u00a329million of Scottish taxpayers’ cash fighting for survival"},"content":{"rendered":"

Orbex is selling assets after Danish subsidiary plunged into bankruptcy and UK Government withdrew funding.\"dailyrecord\"<\/p>\n

04:30, 01 Feb 2026Updated 17:30, 01 Feb 2026<\/p>\n

\"Orbex<\/p>\n

Orbex received multi-million pound investments from the Scottish National Investment Bank to manufacture rockets .(Image: Handout )<\/p>\n

The Scottish Government has vowed to keep investing in the space industry despite fears \u00a329.3million of taxpayers\u2019 cash will be lost on a crisis hit rocket company<\/a>.<\/p>\n

Moray based Orbex<\/a> had hoped to carry out its first launches into orbit later this year but is now in talks to sell off assets after its Danish subsidiary collapsed into bankruptcy and the UK Government pulled the plug on further funding.<\/p>\n

<\/p>\n

Orbex was to lead Scotland’s space race but the firm had hit financial troubles.<\/p>\n

The company previously received a huge injection of public money via the Scottish National Investment Bank (SNIB)<\/a> as well as tens of millions from Westminster which could have to be written off.<\/p>\n

Public money has also been ploughed into the SaxaVord<\/a> space centre on Shetland which has been dogged with delays and is yet to successfully carry out a launch.<\/p>\n

A SNIB source said: \u201cThe space sector has massive potential but it also potential for very large losses, we are investing in the knowledge that it is an industry in its infancy and that a lot of companies are likely to fail.<\/p>\n

\u201cIt is now unclear whether the Orbex investments will be lost of whether the company will be able to sell off assets and keep the project alive in some form.\u201d<\/p>\n

Despite the challenges a Scottish Government spokesperson said: \u201cScotland is not just an emerging space nation – it is one of the best places in Europe to locate, invest and grow.<\/p>\n

\u201cWe have and will continue to support the sector directly as it continues to innovate and develop. Ministers are continuing to monitor the situation with other partners.\u201d<\/p>\n

Orbex had initially planned to build its own launch facilities in Sutherland before abandoning the project and instead doing a deal to launch from SaxaVord.<\/p>\n

If the company fails it will also impact the Shetland development which was set back by a test rocket explosion in 2024.<\/p>\n

Highlands and Islands MSP Ariane Burgess said: \u201cDespite benefitting from tens of millions in public investment, Orbex abandoned the Sutherland Spaceport without warning and now leaves workers in Shetland and Moray facing an uncertain future.<\/p>\n

\u201cTheir actions have caused real harm and eroded trust with workers and communities, who now need clarity on what their future holds.<\/p>\n

\u201cBefore any takeover goes ahead, Orbex must spell out exactly what this means for jobs, land use, environmental safeguards and long\u2011term local benefit.\u201d<\/p>\n

\"Jamie<\/p>\n

MSP Jamie Halcro (Image: Getty\/Pentland Ferries)<\/p>\n

Scottish Conservative MSP for Highlands and Islands Jamie Halcro Johnston said: \u201cLabour\u2019s decision to pull the plug on investment will raise concerns about potential job losses.<\/p>\n

\u201cBut millions of pounds of taxpayers\u2019 money already invested by SNIB is also at risk, with this just the latest in a string of companies that have run into trouble despite substantial investment of public money.<\/p>\n

\u201cThe SNP\u2019s high-tax, anti-growth approach has created a hostile climate for businesses, and this risks being another example of the SNP\u2019s failure to provide an environment that supports Scottish firms.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Orbex is selling assets after Danish subsidiary plunged into bankruptcy and UK Government withdrew funding. 04:30, 01 Feb…\n","protected":false},"author":2,"featured_media":402812,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[1397,2053,8934,90,24716,14255,416,6929,1892,56,54,55],"class_list":["post-402811","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-environment","tag-labour-party","tag-premium","tag-science","tag-scottish-national-party","tag-shetland","tag-space","tag-sunday-mail","tag-taxes","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/402811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=402811"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/402811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/402812"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=402811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=402811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=402811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}