South Ayrshire Council has formally confirmed the collapse of its Prestwick Spaceport plans, leading to a significant write-off of almost £3.28 million that had been spent on the ambitious but ultimately failed project. The decision was officially made at a full council meeting on Thursday, marking the definitive end of an initiative that was once a cornerstone of the £80 million Ayrshire Growth Deal.

Originally approved in 2020, the Prestwick Spaceport project aimed to position South Ayrshire at the forefront of the UK’s commercial space industry by developing a horizontal launch site at Prestwick Airport and securing a Civil Aviation Authority licence. This flagship endeavour was envisioned to create high-value jobs and bolster the local economy.

According to a report presented to councillors, the expenditure on the project covered a range of essential activities. These included detailed feasibility studies, comprehensive design work, ensuring regulatory compliance, and extensive engagement with various potential commercial partners. These initial investments were crucial steps in attempting to bring the spaceport vision to fruition.

However, the project encountered insurmountable challenges that led to its eventual downfall. Officials concluded that a combination of significant industry changes, the unexpected withdrawal of key commercial partners, and a constantly shifting regulatory and competitive landscape made it impossible to deliver the project within its originally planned timescale or budget. These factors collectively undermined the viability of the spaceport.

As a direct consequence of these issues, a review of the broader Ayrshire Growth Deal programme in 2024/25 prompted a formal request to both the UK and Scottish Governments to remove the spaceport from the deal. This request was subsequently approved in July 2025. The council has affirmed that the £3.279 million in costs will be absorbed from provisions already allocated in its balance sheet, thereby preventing any ongoing financial burden on future budgets.

Drawing a line under the project will enable the council to reallocate valuable resources and focus on alternative initiatives that demonstrate a clearer and more promising prospect of generating jobs and delivering tangible economic benefits for the region. Furthermore, council officials emphasised that formally acknowledging the expenditure ensures adherence to proper accounting practices and maintains transparency, effectively closing the spaceport chapter of the Ayrshire Growth Deal.

During the council discussions, Councillor Brian McGinley raised pertinent questions regarding the potential redeemability or refundability of any of the expended work, or whether preparatory work could be repurposed for other local projects. Finance chief Tim Baulk clarified that, despite multiple discussions with the Scottish Government, the costs were deemed the council’s risk. He regretfully stated, “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 further assured that these questions about recoverability had been exhaustively explored over the preceding 18 to 24 months.