A British rocket will be launching from UK soil this year for the first time, with the hopes of reaching space. The project will be able to attempt take-off following a £20million cash boost from taxpayer funding.

The 62ft rocket is being built by Scotland-based company Orbex at a factory in Forres, Moray, and will carry small satellites to orbit in space.

On Wednesday, Technology Secretary Peter Kyle made the announcement of the investment package, enabling the rocket to launch from the Shetland Islands by the end of the year.

No rocket has successfully taken off from UK soil as Sir Richard Branson’s Virgin Orbit failed to launch in 2023. Since then, a number of space businesses have been racing to hold the title, with Orbex paving the way.

Mr Kyle explained how the pending launch was a “unique opportunity” for the nation to speed ahead of its European rivals, bringing “prestige” to the space sector. The investment also contributes to the Prime Minister's aim of promoting growth, he explained.

“Space is one of the global high-growth sectors. We want to seek to harness that,” Mr Kyle told The Telegraph.

He added: “We do have unique assets here because of our geography and skills.”

Orbex’s mission could set the UK on an independent path to completing its own space missions, establishing a position in the market against giants such as Elon Musk’s SpaceX. However, Mr Kyle insisted the UK would not be trying to copy SpaceX’s recent efforts, claiming that Britain would not become a “mini-America”.

If Orbex’s mission is successful, it will be the first UK-made rocket able to complete orbital missions since Black Arrow. Last flying in 1971, Black Arrow undertook just one orbital mission and launched from a base in Australia, not flying from UK soil.

Orbex had originally planned to manage its own rocket base in Scotland, yet the project was paused to focus on low-carbon rocket developments. Local groups were “deeply disappointed” by the decision to axe the Highlands spaceport, yet the £20m boost means the project can be relaunched.

The investment will be in the form of a convertible loan, which means debt can be converted into equity.

Mr Kyle said the new UK space strategy is “much more focused” with the UK soon able to “design, test, build and launch British rockets, carrying British satellites, from British soil”.