British rocket company Orbex is on the brink of collapse despite receiving £26 million in taxpayer loans from the UK government. The Scottish space start-up, which aimed to launch the first UK rocket from home soil, filed a notice of intent to appoint administrators on Wednesday, putting around 150 jobs at risk.

Orbex had been developing its Prime rocket for launch from the Shetland Islands, which would have marked the first UK space launch since Virgin Orbit's failed mission in 2023. The company had previously secured over £100 million from private investors and was targeting an additional £120 million to fund its launch vehicle development. However, it struggled to raise further private capital despite government support.

Business Secretary Peter Kyle approved £20 million in government loans in January 2025, followed by an additional £6 million last summer as Orbex bid for European Space Agency funding. The company's potential collapse represents a significant setback for Britain's space ambitions, eliminating hopes of establishing a European alternative to Elon Musk's SpaceX. The failure also dashes expectations that the UK could become a competitive player in the global space launch market.