Britain is hoping to blast ahead in the space race by developing its own agency to fund and develop space projects.
A competition will be held later to come up with a name and logo for the organisation.
The man in charge of the project said it could speed up "great ideas", such as a UK launch site to take tourists into space.
At the moment Britain is part of the European Space Agency, and spends £270m a year on space projects.
Experts hope the new agency will mean Britain has more control over where and how that money is spent.