Systemic failures that led to the collapse of a China spy trial could be repeated without major reforms, a committee of MPs has warned.

A report by the Joint Committee on the National Security Strategy said “shambolic” mismanagement led to prosecutors dropping charges against Chris Cash and Chris Berry, who were accused of passing sensitive material to a Chinese intelligence agent.

Both men maintain their innocence.

Critics accused the government of deliberately letting the case fail to avoid damaging trade relations with China, but the report found no “co-ordinated effort” to bring down the trial.

Committee chair Matt Western warned mishandling similar future cases will “corrode public trust”.

Mr Cash, a former parliamentary researcher, and China-based academic Mr Berry, were both charged under the Official Secrets Act in April 2024.

Mr Cash worked for two prominent critics of China, the MPs Tom Tugendhat, then chair of the Foreign Affairs Committee, and Alicia Kearns, who later held the same role.

The Crown Prosecution Service (CPS) said the case collapsed after deputy national security adviser (DNSA) Matthew Collins refused to designate China an “enemy” at the time of the alleged offences.

But the committee of MPs said they were “surprised” by the CPS’s decision, suggesting it could have been “put before the jury”.

The committee found there was no “co-ordinated high-level effort” to collapse or obstruct the trial.

Instead, it was beset by “shambolic” mismanagement and “confusion and misaligned expectations”.

Communications between the CPS and government were “inadequate”, and the eight-month delay in obtaining a second witness statement remains unexplained.

The report also rejected the government’s claim similar trials in the future under the National Security Act 2023 would not collapse. The legislation was brought in under the Tory government to lower the bar in espionage cases – from aiding an “enemy” to offences tied to foreign powers – and covers modern threats like cyber attacks.

“We urge the government to avoid characterising the failure of the Cash/Berry case as a one-off peculiarity created solely by outdated legislation,” the report said.

Western, who is a Labour MP, said: “As the global security environment worsens, sensitive national security cases will arise more frequently.

“The government must show the public that it is confident in standing up to adversaries when required: failing to do so will corrode public trust in our institutions.”

The report calls for the government to consider bringing in sweeping reforms within six months to prevent a repeat.

The role and responsibility of the DNSA – which had been left “isolated and exposed” – must be urgently reviewed and overhauled, the report said.

Communications between the CPS and the government must also be “reviewed and improved at pace”.

In future trials, every espionage case must convene a formal conference within 30 days of charge. These will bring prosecutors, investigators, government witnesses, and law officers to spot weaknesses in the evidence early.

Greater “clarity” must be given on whether government witnesses are giving policy details or evidence, the report said.