Keir Starmer’s national security chief is at the centre of a storm over the collapse of a trial over alleged Chinese spying today.

In his testimony, Jonathan Powell has apparently indicated that the government plans to label Beijing as a ‘challenge’ to the UK, not an ‘enemy’.

However, prosecutions under the Official Secrets Act require proof that defendants acted in the interests of an enemy. 

Christopher Cash, 30, from Whitechapel, east London, and teacher Christopher Berry, 33, of Witney, Oxfordshire, were each charged with the offence of spying under the Official Secrets Act.

They were set to face trial in October, but proceedings against them were stopped on Monday, sparking criticism from Downing Street and MPs.

The pair were accused of passing information about the Government’s foreign policy to a high-ranking member of the Chinese government. They denied the allegations.

Government sources stressed Mr Powell did not have any decision-making role, and only evidence that had been provided between 2021 and 2023 could be used as the new National Security Strategy did not apply retrospectively.  

Asked during interviews this morning about the latest claims in the Sunday Times, Home Secretary Shabana Mahmood repeated that she had been ‘disappointed’ at the collapse of the case.

Jonathan Powell is reported to have made clear that the government would classify Beijing as a ‘challenge’ rather than an ‘enemy’ of the UK in evidence for the case

Asked during interviews this morning about the latest claims in the Sunday Times, Home Secretary Shabana Mahmood repeated that she had been ‘disappointed’ at the collapse of the case

Pushed on the role of Mr Powell – chief of staff to Tony Blair during his premiership – she told the BBC: ‘I don’t recognise that reporting about a meeting, I’m not aware of any such meeting taking place.

‘It was a decision of the Crown Prosecution Service, as they have made clear themselves, an independent decision on whether to proceed with that prosecution.

‘I’m very disappointed that that prosecution has not proceeded. Our understanding is that the evidence that was available to the Crown Prosecution Service when they brought the charges is not materially different to the evidence that they had just before the trial was due to get under way.

‘So, I think it’s a question for the prosecution service to answer, but as the Government, the Home Office, we very much wanted to see that trial proceed.’

Asked if China was an enemy of the UK, she said: ‘China is a ‘challenge’, is, I think, the word that I would use.’

She said Sir Keir’s Government had a ‘hard-headed, realistic approach’ to the Chinese state.

Mr Powell has been credited as pivotal in the Good Friday Agreement during Sir Tony’s time in No10. 

But he has been heavily criticised recently as the architect of the Chagos Islands deal – which means the UK ceding the territory to Mauritius and paying large sums to lease back the Diego Garcia military base. 

According to the Sunday Times, Mr Powell gathered top Whitehall officials including Foreign Office permanent secretary Oliver Robbins to discuss the spying case early last month.

He is said to have indicated the evidence would be based on the National Security Strategy 2025 report, which stopped short of branding China as ‘enemy’ and instead referred to the Asian state as a ‘challenge’. 

Parliamentary aide Christopher Cash, 30, (pictured above in April arriving at Westminster Magistrates Court) and British teacher Christopher Berry, 33, were each charged with the offence of spying under the Official Secrets Act. They denied any wrongdoing 

They were set to face trial in October, but proceedings against them were stopped on Monday, sparking criticism from Downing Street and MPs. Pictured: Christopher Berry (right)

The Crown Prosecution Service (CPS) was said to have been under the impression that a senior civil servant would give evidence to establish that Beijing was an enemy of Britain.  

There were also plans in place for intelligence officials to testify in a closed court to protect their identity.

Stephen Parkinson, chief prosecutor in England and Wales, said the CPS had determined the proceedings had to be stopped because of an ‘evidential failure’.

Witnesses were reportedly told the decision on the evidence came from ‘the very top’, but that was denied by the Cabinet Office as ‘completely false’. 

A Cabinet Office spokesman told the Daily Mail of the Sunday Times report: ‘This is completely false. There has been no material change provided by the government, nor were any of the witnesses limited in the sources upon which evidence could be based.’

The department said: ‘This story is full of fundamental inaccuracies. The decision not to proceed with prosecution under the Official Secrets Act was made by the Crown Prosecution Service entirely independently of government.

‘There has not been a material change in the evidence provided by the government. As a matter of fact, any evidence submitted for this case can only be from the time that the alleged offences took place (2021-2023), rendering the National Security Strategy 2025 unrelated.’

Last month, Dan Jarvis, the Labour security minister, told Parliament the decision to drop the case was ‘independent’ from the government and it was ‘not for any government minister to speculate on the reasons behind it’. 

Mr Cash and Mr Berry have denied any wrongdoing. Mr Cash’s lawyer has said his client is ‘entirely innocent and should never have been arrested, let alone charged’. 

Shadow national security minister Alicia Kearns, who had previously employed Mr Cash, said: ‘There are serious questions about constitutional impropriety.

‘Starmer must find some backbone and root out the truth. Either his ministers or his most senior advisers acted to spike the CPS’ ability to prosecute with his full knowledge, or in contempt of PM – which is it?’

Former Tory leader Sir Iain Duncan Smith pointed to areas such as UK universities’ reliance on the income from Chinese students to say ‘we are now uniquely tied to China and its brutal regime’.

‘We are seen as the soft underbelly of the Western alliance,’ he said.

‘Small wonder Downing Street does China’s bidding in shutting down the spy prosecution.’

Commons Speaker Sir Lindsay Hoyle said the decision effectively gave Beijing ‘licence to operate’ within Parliament

A meeting involving top Whitehall officials allegedly concluded that China would not be described as an ‘enemy’ (pictured: Chinese President Xi Jinping)

Commons Speaker Sir Lindsay Hoyle told the Times the decision effectively gave Beijing ‘licence to operate’ within Parliament, after the men were alleged to have targeted the China Research Group of MPs.

Sir Lindsay said: ‘As Speaker, I take the security of this house incredibly seriously. I believe this leaves the door open to foreign actors trying to spy on the House.

‘This door must be closed hard. We must pursue all avenues to ensure the protection of members and people that work within the House of Commons. It will not be tolerated.’