A minister admitted it is a “concern” that an alleged Chinese spy was able to “slip through the net” to form links at the heart of the British establishment.
The suspect, known only as H6, is said to have become a “close” confidant of the Duke of York and has also been pictured with senior politicians including David Cameron and Theresa May.
Local government minister Mr McMahon told Times Radio: “It’s a concern for all of us that work in Parliament, that the trust has been breached in the way that it has, and that somebody has been found to slip through the net.
“That clearly is a concern. Whether or not that requires somebody being named in Parliament under parliamentary privilege, I think, is a separate matter.”
Former Tory leader Sir Iain Duncan Smith, who is seeking to raise the case in a Commons urgent question, said the H6 case was “the tip of the iceberg”.
“The reality is that there are many, many more involved in exactly this kind of espionage that’s taking place,” he told BBC Radio 4’s Today.
“The reality for us is very simple – China is a very clear threat.”
He urged the Labour administration to push ahead with the foreign influence registration scheme (Firs), which was established under the Conservatives but is yet to be implemented.
Sir Iain dismissed suggestions the scheme was not ready to be implemented when the Tories left office, claiming Labour ministers were seeking “an excuse not to upset China” by implementing the register of lobbyists.
He suggested the Labour government’s approach to engaging with Beijing – in November Sir Keir Starmer became the first prime minister since Baroness May to meet the Chinese president – had put the UK at odds with the US, Canada, Australia and New Zealand, its intelligence allies in the Five Eyes group.
“We are now seen, I think, by our Five Eyes security partners, as the soft underbelly of that alliance and that’s a real worry,” he said.
“And so the story I can understand why it’s been about Prince Andrew, but it’s not really about Prince Andrew. It’s about the way the Chinese Communist Party is seeking to exert influence here in the United Kingdom.”
Nigel Farage has said his Reform UK party is prepared to use parliamentary privilege to name the alleged agent, known only as H6, in the chamber unless the courts lift an anonymity order that protects his identity.
H6 was first excluded from Britain by then-home secretary Suella Braverman in 2023, when the Home Office said he was believed to have carried out “covert and deceptive activity” for the Chinese Communist Party.
Judges at a specialist tribunal in London last week ruled Mrs Braverman had been “entitled to conclude” that he “represented a risk to the national security” after he launched an appeal against the decision.
At a hearing in July, the tribunal was told that an adviser to Andrew said he could act on the duke’s behalf when dealing with potential investors in China, and that H6 had been invited to the duke’s birthday party in 2020.
A letter referencing the event from the aide, Dominic Hampshire, was discovered on H6’s devices when he was stopped at a port in November 2021.
The letter also said: “You should never underestimate the strength of that relationship… Outside of his closest internal confidants, you sit at the very top of a tree that many, many people would like to be on.”
H6 was later informed that he was believed by UK authorities to be connected to the UFWD, which is tasked with conducting influence campaigns.
The Duke of York’s office said he ceased all contact with the individual after concerns were raised.