
Rayner orders China to explain secret basement under London ‘mega-embassy'
Ms Rayner, who as Housing Secretary is tasked with deciding whether the project in the Royal Mint Court can go ahead, has given Beijing two weeks to explain why certain parts of its floor plans have been 'greyed out'.
It comes amid fears the complex could effectively become a nest of espionage in the heart of London, with reports China could convert basement rooms into 'spy dungeons'.
The demands from Ms Rayner are set out in an update from her department sent to DP9, the planning consultancy representing the Chinese embassy.
It suggests a possible change of tone in the Government's approach to the project.
Sir Keir Starmer was lobbied directly over the proposals by Xi Jinping, the Chinese premier, and has previously refused to intervene in the project, despite pressure from the US to block it on security grounds.
Ms Rayner's letter, sent on Wednesday, was also addressed to Yvette Cooper, the Home Secretary, and David Lammy, the Foreign Secretary. Other key players including the local council and Metropolitan Police were copied in.
It revealed that Ms Rayner has asked Beijing to explain why some drawings submitted as part of the embassy plans have been marked as redacted.
These include a proposed basement 'master plan', which contains two suites of anonymous rooms and a tunnel previously flagged up by critics as a potential 'modern-day dungeon' for spies.
A note attached to the diagram states: 'This drawing has been redacted for security reasons.'
The letter also notes that the 'internal physical arrangements' of two buildings, the Cultural Exchange Building and Embassy House, both of which have basements, have been 'greyed out'.
It goes on to ask for representations on whether Ms Rayner can reach a 'lawful determination' on planning permission on the basis of the redacted plans.
The update was shared on social media by Luke de Pulford, the head of the Interparliamentary Alliance on China, which was copied into the correspondence.
It is likely to reignite widespread concerns over the proposed 'mega-embassy', with critics having repeatedly warned that it could pose a threat to Britain's national security.
The US is said to have urged the UK to reject the proposals on security grounds given the site's proximity to a hub of sensitive data near key financial centres.
Sir Iain Duncan Smith, the former Tory leader, wrote to Ms Rayner last month to reiterate these concerns, saying it would be 'inappropriate' to approve the application pending a plan to address such a 'serious matter'.
The proposed 'mega-embassy' at the former Royal Mint site, near the Tower of London, has been locked in a planning battle for years, with the decision called in for review by Ms Rayner last year.
Following a public inquiry, the Planning Inspectorate has reportedly given the development the green light, with the Deputy Prime Minister to make a final decision by September.
Mr de Pulford said he was hopeful the 'tough' demands set out in the letter indicated the Government had 'seen the light' and would put a stop to the plans.
He told The Telegraph: 'This development is a disaster for national security, residents, and UK interests. It should never have got this far.
'I can't see how Beijing is going to meet the Secretary of State's conditions. So, either a deal has already been done – and the Government is trying to look tough – or they've genuinely seen the light. After a long, hard fight, we're certainly hoping the latter.'
'Greyed-out'
The Ministry of Housing refused to comment while the decision-making process was ongoing. All parties have been given a deadline of Aug 20 to make further representations.
There is some confusion about whether the drawings in question are supposed to be redacted or not. In some cases, the Government says other documents obtained as part of the public inquiry appear to fill in some of the gaps.
The letter states: 'The Secretary of State has noted that the Planning (Addendum 2) Drawing List dated 31 Jan 2025 identifies drawings which are said to be redacted.
'Some of those drawings are marked on their face as being 'redacted for security reasons', and it appears that this may refer, at least principally, to the internal physical arrangements of the Cultural Exchange Building and Embassy House, both of which have been 'greyed-out'.
'However, other plans which are identified as being redacted in the Drawing List are not marked on their face as such, and contain no obvious redactions.
'Furthermore, in some cases, documents which were before the inquiry... appear to show, indicatively at least, information which was redacted on the drawings (e.g. the internal physical arrangements of some of the buildings).'
As a result, Ms Rayner has asked China to 'identify precisely and comprehensively' what has been redacted, what the nature of the redactions are, and the rationale and justification for them.
The letter also requests an update from Ms Cooper and Mr Lammy on two conditions they set for the 'mega-embassy' in February.
The first was to consolidate all Chinese consular premises in London in the new complex, and the second was for a hard perimeter to be built around part of the site so people can still access some historic ruins.
If Ms Cooper and Mr Lammy refuse to budge on their demands, Beijing will need to agree to the adjustments or abandon the plans, which have been years in the making.
Meeting the condition on the hard perimeter would be difficult because the local planning authority has said it would constitute a 'material amendment' to the application that would require further consultation.
The embassy plans were initially rejected in 2022 by Tower Hamlets Council owing to health and safety concerns. The proposal was then withdrawn by China, before being resubmitted a month after Labour came to power. Mr Xi is said to have personally sought Sir Keir's support for the plan in a phone call between the two leaders.
Ms Rayner then used her powers as Housing Secretary to take control of the planning decision, after reportedly being urged by Mr Lammy to do so.
The Conservatives have warned it is 'likely' the embassy will be used as a base for Chinese espionage and urged the Government to block it.
Chris Philp, the shadow home secretary, told Sky News in June: 'We've seen the Chinese government cracking down on dissidents, running secret police stations in the UK, even putting bounties on the heads of dissidents, some of whom I've met. We should not be giving permission to this.'
Ms Rayner also faces a backlash from her own party if she waves through the application, with one Labour MP telling The Telegraph in June they thought it would be wrong to approve it.
The row presents an awkward dilemma for Sir Keir Starmer, who has pursued a strategy of engagement with Beijing while attempting to maintain a positive relationship with Donald Trump, a prominent China sceptic.
Peter Kyle, the Science Secretary, has said the UK will offer a 'fulsome response' to any security fears raised.
Robert Jenrick, the shadow justice secretary, has said he would support a judicial review into the decision if the plans are approved. This would involve challenging the lawfulness of the decision, raising the prospect of it being overturned in the courts.
The Chinese embassy has always waved away criticism of the proposals and the claims about national security being in jeopardy.
In response to previous reports about the basement rooms being used as 'spy dungeons', a spokesman said: 'Anti-China elements are always keen on slandering and attacking China.'

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