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CHINA GCHQ and SIS tasking is set by the Government and, rightly, they cannot work outside the Government's priorities. Nevertheless, the fact that China was such a relatively low priority in 2018—the same year in which China approved the removal of term limits on the Presidency, allowing President Xi Jinping to remain in office as long as he wished—is concerning. Work must continue to be prioritised now to make up for this slow start and there must be clear measurement and evaluation of effort.

It is clear that both GCHQ and SIS face a formidable challenge in relation to China. What we were unable to assess—without the specific requirements set for the Agencies or any idea of the prioritisation of the 'outcomes' within the Intelligence Outcomes Prioritisation Plan—is how effective either Agency is at tackling that challenge. As a result of pressures placed on civil servants during the Covid-19 pandemic—including fewer people in offices with access to the necessary IT systems—the Cabinet Office has not measured the Agencies' success against its requirements, and so neither the Government nor Parliament has any assurance about their effectiveness.

We have seen efforts grow over the duration of this Inquiry. We expect to see those efforts continue to increase as coverage leads to an increased programme of 'effects'. However, given the importance of the work, it is vital that the Cabinet Office carries out an evaluation on whether SIS and GCHQ are meeting their targets in relation to China. That evaluation must be shared with this Committee.

***. Increased surveillance, both in the physical and virtual world, poses significant challenges to long-term intelligence-generating capabilities ***. This problem is only going to get more difficult. SIS and GCHQ should prioritise work on this *** ***.

Although we have stated this earlier in this Report, it bears repeating specifically in relation to legislation: the length of time it has taken to reform the Official Secrets Acts is unconscionable. Our predecessors were told that the Acts required updating as a matter of urgency in January 2019. Over three years later, we have yet to see the introduction of a Bill. National security legislation ought to be a priority for any UK Government—it is certainly not a matter to be kicked into the long grass by successive Governments.

We recommend that HMG ensure that a Counter-State Threats Bill is enacted as a matter of urgency.