Lowering the threat level was 'not unreasonable', MPs said
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A "simpler, more flexible" system of warning about threats to the UK will be introduced, says the home secretary.
John Reid was responding to criticism of the current system, which was said by MPs to provide "inappropriate reassurance" to the public.
Any new system must recognise the "limitations" of intelligence gathering, a report by the Intelligence and Security Committee (ISC) said.
Lowering the threat level before 7 July had not been "unreasonable", said MPs.
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When I was home secretary, with the information and advice I was given... I would have said to MI5 'I don't believe this is the correct thing to do'
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In the run-up to the London bombings the threat level was reduced by MI5 from "severe general" to "substantial".
The report published on Thursday by ISC said this was based on intelligence available at the time.
"There was no specific intelligence of the July 7 plot nor of any other group with a current credible plot," it said.
But former Home Secretary David Blunkett told BBC News he would not have lowered the threat.
"When I was home secretary, with the information and advice I was given, I would not have countenanced, I would have said to MI5 'I don't believe this is the correct thing to do'," he said.
Clarity call
ISC chairman Paul Murphy said the current threat level and alert system was "confusing".
"There must be clarity for the public and practitioners and there is a real need for the public to be better informed," he said in a statement.
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THREAT LEVELS
Negligible
Low
Moderate
Substantial
Severe general
Severe defined
Critical
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He said lessons had to be learnt as a result of the attacks.
"Coverage of the threat at home and abroad must be increased," he said.
The committee recommended the system be revamped recognising "the limitations of intelligence gathering and that attacks may be at the planning stage without being detected".
"We recommend that these limits are reflected in a more standardised and formalised way within the threat level system and in all threat level reports," the report continues.
"This will help avoid inappropriate reassurance about the level of threat in the absence of intelligence of a current plot."
Mr Reid, giving the government's official account of the 7 July attacks to the Commons, responded by saying a "simpler, more flexible and proportionate system" for determining the threat level would be introduced.
Threat levels
MI5's Joint Terrorism Analysis Centre (JTAC) is responsible for bringing together intelligence on threats and producing threat assessments.
The "severe general" threat level was in place before it was changed to "substantial" just before the London bombings.
According to the ISC report, the level of threat is classed "severe general" when "available intelligence and recent events indicate that terrorists have an established capability and current intent to mount an attack on the target or targets of this nature".
"It is assessed that an attack is a priority for the terrorists and is likely to be mounted."
The threat level is defined as "substantial" when "available intelligence and recent events indicate terrorists have the capability to mount an attack on the target and that such an attack is within the group's current intent".
"It is assessed that an attack is likely to be a priority for the terrorists and might well be mounted."