Council write off £3.28m spent on failed Prestwick spaceport project

The collapse of plans for Prestwick Spaceport has seen South Ayrshire Council write off almost £3.28m it spent on the failed project.

The council formally confirmed the end of its plans for the project at a meeting on Thursday.

The project was originally one of the flagship initiatives of the £80m Ayrshire Growth Deal, which aimed to create high-value jobs and place South Ayrshire at the forefront of the UK’s commercial space industry.

Approved in 2020, the proposal centred on developing a horizontal launch site at Prestwick Airport and securing a Civil Aviation Authority licence.

According to a report presented to councillors this week, expenditure on the project covered feasibility studies, design work, regulatory compliance and engagement with potential partners.

However, a combination of industry changes, the withdrawal of key commercial partners, and a shifting regulatory and competitive landscape led officials to conclude the project could not be delivered within the planned timescale or budget.

A review of the Ayrshire Growth Deal programme in 2024/25 resulted in a change request being submitted to both the UK and Scottish Governments to remove the spaceport from the deal. That request was approved in July 2025.

The council has confirmed the £3.279m costs will be met from provisions already set aside in its balance sheet, avoiding an ongoing burden on future budgets.

Officials said drawing a line under the project will allow resources to be refocused on initiatives with a clearer prospect of delivering jobs and economic benefit.

Councillors were also told that formally noting the expenditure ensures proper accounting practice and transparency, while closing the spaceport chapter of the Ayrshire Growth Deal.

Councillor Brian McGinley said: “I just want to make the point that it couldn’t have been easy trying to change course in this regard.

“Is any of this redeemable? Is any of the work refundable in some way or can we use it in a different way?

“Or is there some of the preparatory work that we could use for another building?

Finance chief Tim Baulk said that the council had multiple discussions with the Scottish Government.

He added: “Unfortunately, the costs were our risk and I don’t believe the work that was undertaken on the spaceport can be converted to something else in our area.

“The unfortunate answer is no.”

Council leader Brian Connolly said: “I can assure Councillor McGinley that we’ve asked those questions a hundred times over the past 18 to 24 month and Mr Baulk had every look at what was recoverable or not.”