The post-war UK aerospace industry had a lot going for it, technology-wise, but was badly compromised both by the economic aftermath of two world wars and by short-sighted and not-particularly-bright political leadership.
The latter-day "space shuttle" attempted by the guys at TopGear seen above worked a good bit better than I thought it would, actually, though it does highlight the non-wisdom of the US in going with such an overly complex approach to manned space flight. As it was, Shuttle was a very inefficient and ultimately rather risky way to spend the last thirty years getting to LEO...
The problem,certainly with the "aero"part of it,was the propensity of British manufacturers to get locked into projects with continually expanding lead times.
A case in point is the Hawker Hunter.
This was a beautiful aeroplane,but by the time it went into service,it had been passed in performance by US made aircraft.
The hopes of orders from Commonwealth countries did not,in the main,eventuate.
Australia were looking at them,but decided to build a modified version of the NA F86.
CAC in Oz fitted British Avons to stretched F86 airframes to produce an aircraft with equal performance to the Hunter,& superior to the original F86.
Canada did something similar,with their Orenda-Sabre.
Hunters did eventually have a long, useful, life,but not as the fast interceptors they were planned to be.
In WW2,the British aviation industry concentrated on producing "war-winners",& plenty of them,so even if your pet project got cancelled,your factory was still kept busy making other designer's aircraft.
Peacetime was a different kettle of fish,as all these factories with vastly increased production capacity were forced into competing for a slice of a fast-diminishing pie.
This,of course,lead to the situation referred to above,as what funds there were,were drained away from the development of new,& indeed existing designs.
The Hunter would certainly had a better career,if it had been available for squadron service in,say,1951!
The same sort of thing happened with the Brit's rocket program.
By the time Blue Streak was almost fully developed,other cheaper options,such as buying ICBMs from the USA had appeared.
Any Space exploration dividend from Blue Streak was only incidental,as it was meant to be a weapon,first & foremost.