Kemi Badenoch slammed Labour’s “ineptitude” over the China spy scandal and claimed ministers deliberately collapsed the case to “curry favour with the regime” in Beijing.
The Conservative leader warned that by failing to prosecute two alleged spies, the Government had told Britain’s enemies they can get away with espionage.
And Mrs Badenoch claimed Labour’s response to the crisis was to issue leaflets.
The case against 30-year-old Christopher Cash, a former parliamentary researcher, and 33-year-old Christopher Berry, a teacher, was dropped last month after the Government failed to provide evidence designating China as a threat to national security. They both denied the charges.
The director of public prosecutions Stephen Parkinson said the case collapsed after the Government failed to provide evidence that China was a threat.
Tory leader Kemi Badenoch blasted Labour, telling MPs: “This is about the ineptitude
“China spied on us and they are issuing us with leaflets.
“The CPS had what it felt was a clear and compelling case to prosecute.
“But the trial has collapsed because for months and months, the Government has been refusing to give the CPS vital information.
“This wasn’t a mistake. This wasn’t a misunderstanding.
“This looks like a deliberate decision to collapse the case to curry favour with the regime in China. And instead of admitted this, the Security Minister has come here blaming the Official Secrets Act.
“If the Government does not prosecute those who spy on us, it sends a message to the public that the Government does not care about their safety.
“It sends a message to our allies who share intelligence with us that Britain cannot be trusted.
“And it sends a message to those who spy on us that they can get away with it.”
Mrs Badenoch, in a blistering attack, added in an emergency debate in Parliament: “Is it seriously the Government’s argument that no minister knew anything about this until the trial collapsed?
“If this is the case, it is astonishing.
“But my suspicion is that it is not the case. My suspicion is that ministers did know.
“They have the Chinese super embassy in their in-tray.
“They have the billion pounds compensation conversation they are allegedly being asked to pay for nationalising British Steel.
“I suspect that they have decided that closer economic ties with China were more important than due process and our national security.
“And if this is the case, if that was the decision of this Government, then they should just tell us that and have the backbone to admit it.
“They should explain it to the public. They should explain it to the CPS, they should explain it to our international allies and let them all be the judge.
“There is nowhere to hide.”
Security minister Dan Jarvis insisted that the Government did not withdraw or conceal any evidence in the China spy case.
He added: “For days, the party opposite has been making baseless claims that this Government deliberately collapsed an independent legal process through political interference.
“There is not a shred of evidence to back up any of those accusations that she’s made.”
Mr Jarvis added that Ms Badenoch had said in September last year that she had previously “shied away from calling China a threat”.
He said: “Every effort was made to provide evidence to support this case. The decision about whether to proceed with the prosecution was ultimately taken by the CPS, who were hamstrung by antiquated legislation that had not been updated by the previous Conservative government, despite the evolving nature of the state threats we face.
“The DPP (director of public prosecutions) has given his assurance that the CPS was not influenced by any external party, any member of this Government, nor any senior civil servant or special advisor working within it.
“Suggestions that the Government concealed evidence, withdrew witnesses or restricted the ability of witnesses to draw on particular bits of evidence, are all untrue.”
Mr Jarvis said ministers cannot “retrospectively change policy that existed” under previous Conservative administrations.
The security minister told MPs: “Now, I’ve listened with interest in recent days to advice from former Conservative ministers on how the UK should now define our approach to China.
“But I must remind them and the House that what matters is what their policy was in government.”
Mr Jarvis added that “ministers cannot retrospectively change policy that existed under the Conservative government”.
He later said: “The CPS (Crown Prosecution Service) decision to drop the case was not influenced by any member of this Government, nor special adviser or senior official.”
Commons Speaker Sir Lindsay Hoyle told MPs over the China spy scandal: “I am very angry”.
Sir Lindsay continued: “It is of the utmost importance to me that all those who work in this Parliament are able to undertake their activities securely and without interference.
“I continue to seek advice from officials on what further steps might be taken to pursue the issue in other ways.
“I will be issuing an updated security guidance to members later today.”
Sir Lindsay said: “I think there is something the Government ought to be aware of – it is this Parliament that has been spied on. It is MPs’ offices that have been infiltrated.
“And as it stands, what we have seen is the payment for spying on what I believe should be protected.
“At this moment, I feel we haven’t had the protection. I certainly don’t blame the minister.
“I know that he will be answering a lot in his statement and taking many questions, but I do want to put on record – I’m angry and disappointed.
“My job is to protect Parliament. I feel we aren’t getting that protection.”
This is a breaking story. More to follow.