A Chinese mega-embassy near the Tower of London is set to be approved by ministers within weeks.
The Planning Inspectorate, which decides on major infrastructure projects, has given the scheme the go-ahead in a report sent to Angela Rayner just under a fortnight ago, the Sunday Times reported.
It is expected to be formally approved by the Deputy Prime Minister before September, a move that would likely begin a judicial review process.
Security officials and the US government had urged the Labour government to block the development amid espionage concerns. “The United States is deeply concerned about providing China with potential access to the sensitive communications of one of our closest allies,” one White House official told the Sunday Times.
The so-called “super-embassy” was blocked by the previous government but the plans were put back on the table after personal lobbying from President Xi.
The proposed site sits close to the Tower of London at Royal Mint Court, between the City of London and Canary Wharf.
The Inter-Parliamentary Alliance on China (IPAC) has claimed the Bank of England’s threat team has warned about the “associated risks” of the site, which is also very near three critical data centres.
Kemi Badenoch, the leader of the Conservative Party, said: “The government should block this request from China, a state the prime minister himself describes as an ‘adversary’ and which the head of MI5 has said is conducting espionage on an ‘epic scale’ against the UK,” Kemi Badenoch, the leader of the Conservative Party, said in comments reported by the Sunday Times.
“The vast embassy site is several times bigger than the Royal Albert Hall.”
An embassy spokesman said: “Anti-China elements are always keen on slandering and attacking China.”
In a joint letter last week, a group of MPs sanctioned by China wrote to Foreign Secretary David Lammy requesting he take the removal of their sanctions off the table in any discussions surrounding the embassy.
They said: “We hope you will take this opportunity to assure us that our sanctions will not be on the table when such matters are under consideration.
“We would all rather remain sanctioned than trade away our national security.”
The government has been approached for comment.