Inspector's report into Chinese ‘mega-embassy' with ministers for final decision
Until then, neither the inspector's report nor its recommendation would be made public.
The plans by Beijing for a super-embassy on the historic former site of the Royal Mint near the capital's financial district have sparked security concerns.
Worries stem from the close proximity of the extensive development to critical data centres and communication cables.
The contentious scheme comes against the backdrop of ongoing disquiet over Chinese interference in the UK, with allegations of spies infiltrating the establishment and secret police stations being used to intimidate dissidents in Britain.
Unease has also previously been raised over ministerial involvement in progressing the plans, after the Metropolitan Police dropped their opposition.
The final decision on the application now rests with Communities Secretary Angela Rayner (PA/Gareth Fuller)
The embassy development was 'called in', which means Communities Secretary Angela Rayner, who is also Deputy Prime Minister, will make the final decision taking into account the inspector's findings.
Updating peers at Westminster, Lady Taylor said: 'The inspector's report was received on June 10 by the department.
'Parties have been notified that a decision will be made on or before September 9 2025.
'As the report has just been received, we have not yet begun to assess the case.
'The inspector's report will form part of the final decision and will be released alongside it.
'Until that point, neither the recommendation nor the report will be made public.'
She added: 'Because we now have the report, we will be considering it, it wouldn't be helpful to comment on any specific security issue raised on the application while it's under active consideration by the department.'
The minister said the inspector's evidence-based recommendation would take into account a wide variety of material planning matters, which 'may include safety and national security'.
Pressed over previous warnings by the head of MI5 over the 'epic scale' of Chinese espionage in the UK, Lady Taylor said: 'National security is, of course, the first duty of government, more generally.
'With regards to the specifics of the case, the inspector's report will consider the application against all of the national issues, local issues and regional issues, according to planning policy, and safety and national security will be taken into consideration, to make sure that we have considered fully all of the issues that may relate to this planning application.'
She added: 'It's difficult to answer general questions about the relationship with China and talk about that in the same space as a planning decision, which has to be taken according to a fixed process.
'But please be assured that national security is (something) we very strongly consider to be our first duty.'
Independent crossbencher Lord Alton of Liverpool, who has been banned by Beijing over his criticism of its human rights record, including its treatment of the Uighur Muslim minority, said: 'It's hard to imagine that if in 1980 the former Soviet Union had asked for a prime site for a new mega-embassy that we in Parliament would have agreed at that time.'
Responding, Lady Taylor said: 'The Government stands firm on human rights, including against China's repression of the people of Xinjiang and Tibet.'
On the plans for the embassy, she added: 'All material planning considerations will be taken into account in determining the case.'
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