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A new directory showcases the range of UK expertise in satellite technology and how it can help tackle problems such as illegal deforestation, disaster response and food production.

• New register of UK space companies will promote services abroad
• List includes more than 50 solutions for global challenges, such as natural disasters and food production
• Governments and Non-Governmental Organisations can work together with UK space companies to benefit communities and save lives.

The new register of specialist products and services, from companies and universities, and funded by UK aid, has been organised by the UK space industry and offers ways to use cutting edge space technologies to solve some of the world’s global challenges in agriculture, health and energy.

It provides international governments, donors, Non-Governmental Organisations and companies, with information on cost-effective ways to help development goals.

Science Minister Chris Skidmore said:

We can be proud that many of the companies at the cutting edge of the latest space technologies are based right here in the UK, providing high skilled, well paid jobs right across the country.

Today’s new directory showcases what the UK space industry has to offer, giving details of what is already being achieved as far afield as Asia, Africa and South America, and offering a single place to tap into this expertise and these services.

The huge growth opportunity for the UK space sector is supported through our modern Industrial Strategy, promoting both here and abroad the best that British businesses can offer, helping deliver thousands of highly skilled jobs and boosting our economy.

There has been significant growth in the UK space sector in recent years which provides £14.8 billion in total income, 37% of which is generated by international trade. Satellite services, such as Earth observation and communications, support a wealth of other sectors worth an estimated £300 billion of UK GDP.

Dr Graham Turnock, Chief Executive of the UK Space Agency, said:

The UK space sector generates billions of pounds for our economy and 42,000 jobs, and it also makes a real impact on the lives of people all over the world.

For the first time this directory provides a global platform to showcase UK expertise in using space to support sustainable development. This ‘one-stop shop’ offers innovative and cost-effective solutions to some of the major problems faced by developing countries and emerging economies.

The services in the catalogue are drawn from the UK Space Agency’s International Partnership Programme, the largest of its kind in the world, which is already working in more than 30 countries across Africa, Asia and South America.

The £152 million programme uses UK expertise to benefit communities in developing and emerging economies, while building effective partnerships that can lead to growth and opportunities for the UK’s thriving space sector. It is an example of how UK development spending can tackle serious global challenges and advance common interests.

Potential users can search through categories that best describe their requirements and learn about the solutions the UK space sector offers.

Andrew Carrel, Chief Technology Officer at Rezatec, said:

Rezatec is delighted to be a part of the UKSA IPP programme, which is a great opportunity to demonstrate our geospatial data analytics services to a global audience through the COMPASS project. This deployment to improve crop yields and incomes for farmers in Mexico is a demonstration of our capability in agriculture. This complements our data services for the commodities, forestry, infrastructure and water sectors, which are used by businesses and government agencies around the world.

Andy Wells, EASOS Business Head at Satellite Applications Catapult Limited, said:

This is a huge step forward as it will build understanding of the potential of space to meet global issues and challenges. We create some superb capability in the UK and this catalogue will generate opportunity for both our academic and commercial space sector.

Additional information:

The UK Space Agency’s International Partnership Programme (IPP) is a five-year, £152 million programme designed to partner UK space expertise with overseas governments and organisations. It is funded with UK aid through the Department for Business, Energy and Industrial Strategy’s Global Challenges Research Fund (GCRF) a £1.5 billion fund. All projects are match-funded by consortium members and international partners to ensure maximum value for money.

The Competition and Markets Authority (CMA) has published its final report with recommendations to address serious competition problems in the UK audit industry.

Legislation is needed to address both the vulnerability of the industry to the loss of one of the Big 4, and the current inadequate choice and competition.

The CMA is recommending the separation of audit from consulting services, mandatory ‘joint audit’ to enable firms outside the Big 4 to develop the capacity needed to review the UK’s biggest companies, and the introduction of statutory regulatory powers to increase accountability of companies’ audit committees.

The CMA’s recommendations follow extensive discussions with audit firms, investors and major UK companies on its update paper – published in December. They also take account of the recommendations of a major report from the Business Select Committee, and the inquiry into regulation led by Sir John Kingman.

The recommendations are:

Operational split

Auditors should focus exclusively on producing the most challenging and objective audits, rather than being influenced by their much larger consultancy businesses. Given the difficulties with an immediate global structural split, the CMA is – at this stage – recommending an operational split of the Big 4’s UK audit work. This will require separate management, accounts and remuneration: a separate CEO and board for the audit arm; separate financial statements for the audit practice; an end to profit-sharing between audit and consultancy, and promotions and bonuses based on the quality of the audits.

More choice to increase resilience: mandatory joint audit

More choice and competition for the audits of big businesses can and should drive up their quality, but the barriers to entry for ‘challenger’ audit firms are currently large. The CMA recommends mandatory joint audit, to increase the capacity of challengers, to increase choice in the market and thereby drive up audit quality. Challenger firms should work alongside the Big 4 in these joint audits and should be jointly liable for the results. There should be initial limited exceptions to the requirement, based on criteria set by the regulator, focused on the largest and most complex companies. In addition, any company choosing a sole ‘challenger’ auditor should be exempt. Audits of exempt companies may be subject to rigorous, real-time peer reviews commissioned by and reporting to the regulator. The joint audit requirement should remain in place until the regulator determines that choice and competition have improved enough to address the vulnerability of the market to the loss of one of the Big 4.

Regulation of UK companies’ audit committees

It is essential that audit committees choose auditors by seeking those likely to provide the most robust and constructive challenge to the accounting practices of their companies. The CMA recommends that the regulator should hold audit committees more vigorously to account. This may include ensuring that committees report their decisions as they hire and supervise auditors, and that the regulator issues public reprimands to companies whose committees fall short of adequate scrutiny of their auditors.

A 5 year review of progress by the regulator

The regulator should review the effects of these changes periodically, in the first instance five years from full implementation. This should consider in particular: the merits of moving to independent appointment for auditors; whether to go beyond the operational split already proposed; and how to fine-tune the joint audit remedy to adapt to market developments.

CMA Chairman Andrew Tyrie said:

People’s livelihoods, savings and pensions all depend on the auditors’ job being done to a high standard. But too many fall short – more than a quarter of big company audits are considered sub-standard by the regulator. This cannot be allowed to continue.

The Government now has three reports to hand. In large part, they come to similar conclusions. Conflicts of interest cannot be allowed to persist; nor can the UK afford to rely on only four firms to audit Britain’s biggest companies any longer. Early action will require legislation – hence the CMA’s proposals.

CMA’s Chief Executive, Andrea Coscelli, also commented:

The UK is recognised as having a strong history in the fields of corporate governance and accounting.

Our recommendations, along with improvements to regulation and clarifying the purpose and scope of audits, will ensure the UK strengthens its position.

We look forward to supporting the Government as it considers how best to take forward these changes through legislation, alongside Sir John Kingman’s recommendations on regulation and the results from Sir Donald Brydon’s review on the quality and effectiveness of audit.

Notes to editors:

1. Market studies are carried out using powers under Part Four of the Enterprise Act 2002. Market Studies can result in a range of outcomes including recommendations to government, enforcement action and referral for market investigation.
2. The CMA’s work has taken account of the Secretary of State’s request that it ‘be ambitious in its thinking and move swiftly on this issue’ (Letter from the Rt Hon Greg Clark to Lord Tyrie, 9 October 2018).
3. The Government has committed to responding to CMA market study recommendations within 90 days. The CMA normally publishes such responses on its website.
4. The Big Four audit firms in the UK are Ernst & Young (EY), Deloitte, KPMG and PricewaterhouseCoopers (PwC).
5. The CMA has taken account of the other reviews of the audit market, including Sir John Kingman’s report on the sector regulator, the Government’s consultation on his work and Sir Donald Brydon’s review of the quality and effectiveness of audit. It has also taken into account the recommendations made by the BEIS Select Committee in its review of the audit market.
6. Media queries should be directed to: press@cma.gov.uk or 020 3738 6460.