'Intelligence gap' threat to UK

Britain faces the threat of terrorist attacks because of "intelligence gaps" caused by underfunding of security services, a parliamentary report says.

The report, by the all-party Intelligence and Security Committee, also saidWestern espionage agencies had failed to understand the threat posed by Osama bin Laden and al-Qa'ida before 11 September.

The MPs' report was the first British inquiry into the failures of the intelligence agencies over the American attacks. It follows investigations in the US that have suggested mistakes by the CIA and FBI led to warnings of the attacks being ignored.

Members said the threat to Britain was more acute than before 11 September, with the country directly in the line of fire because of its role alongside America in the "war on terror".

The committee, which oversees MI5, MI6 and GCHQ, disclosed that British intelligence warned as early as last July that Mr bin Laden was in the "final stages of preparation" for an attack. Espionage chiefs said there was a " pressing need to gather intelligence". However, the intelligence services had limited resources, the committee said, and had underestimated the scale of the threat.

Despite extra funding being authorised, the agencies had had to cut workload because of a lack of resources. "These reductions are causing intelligence gaps to develop, which may mean ... unacceptable risks will arise in terms of safeguarding national security."