A statement on the UK Space Agency (UKSA) site says:

Due to the range of views received during the Reform of the Outer Space Act 1986 consultation the Government response has been delayed.

We hope to be in a position to publish it during the first half of 2013.

Further details will be posted in due course.

The Outer Space Act covers all UK satellites irrespective of size, from tiny low cost educational CubeSats up to large commercial £500 million satellites.

The key aspects of the consultation are the proposals to waive the capped liability and insurance requirement for in-orbit operation of any satellite that meets the criteria of a CubeSat and to remove the requirement for unlimited indemnity from satellite operators.

The existing Outer Space Act imposes heavy additional costs (>£50,000 per annum) on those wishing to launch small educational CubeSats. The additional costs act as a major deterrent and to-date no such UK CubeSat has been launched.

Reform of the Outer Space Act 1986: Consultation http://www.uk.amsat.org/?p=8783