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“Systematic failures” led to the Chinese spy case collapsing – and there’s a risk they could be repeated, a parliamentary inquiry has said.

A report by the Joint Committee on the National Security Strategy (JCNSS) criticised the government and Crown Prosecution Service (CPS) after the case against two British men accused of spying for China collapsed.

Former parliamentary researcher Christopher Cash and teacher Christopher Berry were accused of passing secrets to Beijing between 2021 and 2023. They deny the allegations.

Christopher Cash (L) and Christopher Berry (R). Pics: Reuters
Image:
Christopher Cash (L) and Christopher Berry (R). Pics: Reuters

The charges were dropped in September as the CPS said it could not get evidence from the government referring to China as a national security threat, prompting accusations of a “cover-up” by the Conservatives.

The report by the cross-party group of MPS and peers said the case was beset by “confusion and misaligned expectations” and cautioned against dismissing the case as a “one-off” caused by outdated espionage laws – something the government blamed for the case’s collapse.

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Sky questions China on alleged spying

‘Serious systemic failures’

The committee – which launched a highly unusual investigation following the controversy – warned there are parallels in new legislation which must be handled carefully to prevent a similar issue from recurring.

But while “the sequence of some events has raised eyebrows”, it found no evidence of deliberate or co-ordinated attempts to block or collapse the prosecution – including by the prime minister’s national security adviser Jonathan Powell, who met with officials about the case two days before it was dropped.

Jonathan Powell. Pic: PA
Image:
Jonathan Powell. Pic: PA

However, the committee added: “Overall it is clear that there were serious systemic failures and deficiencies in communications, co-ordination and decision-making.”

It described communications between the government and CPS as “inadequate” and lacking clarity, with an “insufficiently robust” level of senior oversight right from the start of proceedings in 2023 under the Tories.

Read more:
Key witness ‘surprised’ case collapsed
MPs warned of new spying attempts

Matthew Collins
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Matthew Collins

Not enough ‘common sense’?

A statement by deputy national security adviser (DNSA) Matt Collins became the focus after the case’s collapse.

Prosecutors said his refusal to describe Beijing as a “threat” to national security meant the case could not continue.

Mr Collins, the central expert prosecution witness, told the investigation he had provided evidence of a “range of threats” posed by China, but did not describe it as a “generic” threat as that was not the then Tory government’s position.

The committee acknowledged the CPS’s assertion it would have undermined the case at trial if Mr Collins refused to describe China as an active threat, but suggested his statements taken together would have been sufficient.

“We regret that common sense interpretations of the wording provided in the DNSA’s witness statements were apparently not a sufficiently strong basis for meeting the evidential requirements the Crown Prosecution Service considered necessary under the Official Secrets Act 1911,” it said.

It accepted the “root cause” of the problems lay with the Official Secrets Act, which required the term “enemy” to be used of a foreign power, but warned the new National Security Act 2023 doesn’t eliminate “diplomatic sensitivities” around labelling people members of a foreign intelligence service.

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Could a ‘super embassy’ pose a threat?

The committee recommends:

• The Cabinet Office and security services to work with the CPS to formalise principles for handling sensitive cases within the next six months

• Establishing a new rule for a formal case “conference” within 30 days of such charges to avoid a “lack of clarity” over evidence in future.

“We urge the government to avoid characterising the failure of the Cash/Berry case as a one-off peculiarity created solely by outdated legislation: there are structural parallels in the National Security Act 2023 which will require careful handling to avoid comparable issues recurring,” the committee said.

A CPS spokesperson said: “We recognise the strong interest in this case. We will review the recommendations carefully and work with partners to identify where improvements can be made.

“Our decisions are made independently and based on law and evidence, and that principle remains at the heart of our work.”

A government spokesperson said: “We welcome the committee’s report that makes clear that allegations about interference in this case were baseless and untrue.

“The decision to drop the case was taken independently by the Crown Prosecution Service. We remain disappointed that this case did not reach trial.

“Protecting national security is our first duty, and we will never waver from our efforts to keep the British people safe.”

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UK takes ‘massive step forward,’ passing property laws for crypto

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UK takes ‘massive step forward,’ passing property laws for crypto

The UK has passed a bill into law that treats digital assets, such as cryptocurrencies and stablecoins, as property, which advocates say will better protect crypto users.

Lord Speaker John McFall announced in the House of Lords on Tuesday that the Property (Digital Assets etc) Bill was given royal assent, meaning King Charles agreed to make the bill into an Act of Parliament and passed it into law.

Freddie New, policy chief at advocacy group Bitcoin Policy UK, said on X that the bill “becoming law is a massive step forward for Bitcoin in the United Kingdom and for everyone who holds and uses it here.”

Source: Freddie New

Common law in the UK, based on judges’ decisions, has established that digital assets are property, but the bill sought to codify a recommendation made by the Law Commission of England and Wales in 2024 that crypto be categorized as a new form of personal property for clarity.

“UK courts have already treated digital assets as property, but that was all through case-by-case judgments,” said the advocacy group CryptoUK. “Parliament has now written this principle into law.”

“This gives digital assets a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases,” it added.

Digital “things” now considered personal property

CryptoUK said that the bill confirms “that digital or electronic ‘things’ can be objects of personal property rights.”

UK law categorizes personal property in two ways: a “thing in possession,” which is tangible property such as a car, and and a “thing in action,” intangible property, like the right to enforce a contract.

The bill clarifies that “a thing that is digital or electronic in nature” isn’t outside the realm of personal property rights just because it is neither a “thing in possession” nor a “thing in action.”

The Law Commission argued in its report in 2024 that digital assets can possess both qualities, and said that their unclear fit into property rights laws could hamstring dispute resolutions in court.

Related: Group of EU banks pushes for a euro-pegged stablecoin by 2027

Change gives “greater clarity” to crypto users

CryptoUK said on X that the law gives “greater clarity and protection for consumers and investors” and gives crypto holders “the same confidence and certainty they expect with other forms of property.”

“Digital assets can be clearly owned, recovered in cases of theft or fraud, and included within insolvency and estate processes,” it added.