No 10 denies that fears Beijing could pull cash caused China spy case collapse

It is “entirely false” to suggest the Government influenced the collapse of the China espionage case because of concerns Beijing could withdraw investment in the UK, Downing Street has said.

The Prime Minister’s official spokesman also insisted the Government had not suddenly begun to harden its language on China, after Foreign Office minister Hamish Falconer described it as a “threat” on Monday morning.

Charges against Christopher Cash, a former parliamentary researcher, and Christopher Berry, a teacher, were dropped last month, prompting consternation across the political divide.

The Sunday Times reported that the Treasury and national security adviser Jonathan Powell had pushed for the case to be withdrawn, for fear it could prompt economic giant China to withdraw investment in the UK.

But Downing Street robustly denied suggestions that officials or ministers had taken any such approach.

The Prime Minister’s official spokesman told reporters: “It is entirely false. The CPS (Crown Prosecution Service) decision to drop the case was entirely a matter for the CPS.

“There was no role for any member of this Government, no minister, or special adviser, to take any decision in relation to this case. That is entirely for the CPS.”

Amid growing concern about China’s influence, Foreign Office minister Mr Falconer on Monday morning candidly stated that the Government does consider it a threat in certain arenas.

He told Times Radio: “They do pose national security threats to the UK, whether that’s in relation to cybersecurity, transnational repression, their relationship with Russia, in relation to the conflict in Ukraine; but there are also, of course, areas where we have to co-operate.”

The PM’s official spokesman, however, suggested such language was present in the National Security Strategy published in June, which was “clear that China has potentially huge consequences for lives of British citizens”.

“There are, of course, major areas such as human rights and cyber security, where there are stark differences,” he added.

“Successive governments have said that China can’t be reduced to a single word,” the spokesman said, adding that Beijing presents threat, challenge and opportunity for the UK.

Mr Falconer insisted the trial collapsed last month because of the “ropey” and “archaic” Official Secrets Act.

Ministers will follow the “normal” process when it comes to settling a decision about whether China can build its so-called “super embassy” in London, Mr Falconer added.

Reports overnight in The Times suggested the Government has given Beijing assurances about the future of the embassy site.

Security minister Dan Jarvis is expected to give an update to MPs about the case when the Commons returns on Monday afternoon.

Conservative Party leader Kemi Badenoch had written to the Prime Minister asking him to address “unanswered questions” in Parliament about the case over the weekend.

The Conservatives sought to pile pressure on the PM over the case, by seeking an urgent question on the case, while Tory grandee and China hawk Sir Iain Duncan Smith was understood to have put in for an emergency parliamentary debate.

In a letter to the Prime Minister, who is in Egypt attending a summit of world leaders on the Gaza peace plan, Mrs Badenoch said: “Your Government’s account of what has happened has changed repeatedly.

“Instead of setting out the full facts before the House of Commons today, you are planning to travel to the Middle East.

“If you will not make a statement yourself, will you instruct a senior minister to clear things up once and for all through a full parliamentary statement? The public and Parliament deserve answers and transparency.”

Britain’s most senior prosecutor has since said the case collapsed because evidence describing Beijing as a national security threat could not be obtained from Sir Keir’s administration.

Director of Public Prosecutions Stephen Parkinson said last week that the Crown Prosecution Service tried for “many months” to obtain the evidence it needed, but it had not been forthcoming from the Government.

Mrs Badenoch said ministers must say whether it was “still your Government’s position to claim that it would have been impossible to argue that China was a threat in court”.

The Conservative leader also demanded answers to claims that Mr Powell had discussed the case in a meeting last month.

The White House is said to have concerns about the UK’s reliability following the dropping of charges, while two former senior civil servants, Lord Mark Sedwill and Lord Simon Case, have also questioned Sir Keir’s explanation of how the case collapsed.

The Prime Minister has blamed the Conservative administration in power at the time of the alleged offences between December 2021 and February 2023, suggesting “the only relevant evidence” would relate to this period.