STFC have recently published its long awaited Programmatic Review 2013: http://www.stfc.ac.uk/review
One of the Science Boards’ Recommendations as regards the Large Facilities Programme is the following (p. 13):
UK access to a Free Electron Laser (FEL) source is a high priority, but this does not displace the need for continuing access to the current generation of synchrotron sources. There is an important current opportunity for engagement with the European XFEL facility at DESY via user consortia.
R21 – We recommend that STFC pursue the objective of UK Free Electron Laser access in collaboration with the other Research Councils and the scientific community.
The Large Facilities Sub-group (LFS) also said (p. 110)
The UK is in danger of falling behind by not participating in an X-ray free electron laser (X-FEL) project.