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Contingent Liability

20 May 2020

Proposing MP
Horsham
Type
Written Ministerial Statement
Department
Ministry of Defence

At a Glance

Issue Summary

The Ministry of Defence is recognising a new contingent liability associated with satellite operations conducted by the Defence Science and Technology Laboratory (Dstl).

Action Requested

Her Majesty’s Treasury has approved a value of up to £500 million for the contingent liability, which will be noted in the MOD's accounts. The liability applies if a Dstl-operated satellite causes a collision.

Key Facts

  • Ministry of Defence (MOD) received approval from Her Majesty’s Treasury.
  • Contingent liability is associated with Dstl’s operation of research satellites.
  • Ground station installed at Portsdown West site to support space research activities.
  • Contingent liability value up to £500 million for potential collision damage costs.
  • Risk mitigation measures in place; risk level estimated between 0.001-0.01%.
Assessment & feedback
Summary accuracy