The Papers: 'China given a free pass' and 'Kemi: trust me'

"China given a free pass to spy on Britain" is the headline on the Daily Mail. The paper is one of several to lead with remarks from Stephen Parkinson, the director of public prosecutions, who said a case against two men suspected of spying for Beijing collapsed after the government refused to declare China an "active threat".

Two men, who both deny the allegations against them, were accused of collecting information about China-sceptic MPs and passing it to officials in Beijing, but the Telegraph reports that the government refused to disclose evidence which could have secured a conviction under the Official Secrets Act. Prime Minister Sir Keir Starmer says it was not his party's fault because the request related to information before Labour was in power.

The Times also leads with the collapse of the China spying case, and accusations that repeated requests for evidence from the government went "unanswered". The prime minister says he could not provide such evidence because China had not been designated a security threat in 2022-23, the time of the alleged offence. "We couldn't provide them with evidence that contradicted the government's position at the time," a Cabinet Office source said.

The China spy case also features on the front page of the Guardian, but the paper leads with accusations that shadow justice secretary Robert Jenrick fuelled "a fire of toxic nationalism" with recent remarks about a Birmingham suburb. Jenrick "stands by" remarks that Handsworth was one of the "worst-integrated places" he had ever been to.

Community leaders from Handsworth have described Jenrick's comments as "divisive" in Metro's lead. Responding to Jenrick's remark that he had not seen "another white face" while there, their headline reads: "No whites don't make a wrong, Bob!"

Conservative leader Kemi Badenoch will tell her party's conference later today that Labour's economic policies are "stealing from our children and grandchildren", according to the Daily Express. Badenoch will say that her party is the only one with a "plan to get our economy back on track".

Millions of drivers will get £700 payouts as part of an £8.2bn compensation package for a major car finance scandal, according to the i Paper. Firms broke the law by not properly informing buyers about commission they were paid on around 14 million motor deals.

The car finance scandal could cost banks upto £11bn, a lower figure than the industry feared, the Financial Times reports. The paper writes the payout for the loans, mis-sold over 17 years, "is still on track to become one of the industry's biggest compensation schemes".

The £8.2bn payout for the car finance scandal also leads the Sun, which cites one person in line for compensation who says it is "welcome". "Carching!" is the headline.

David Norris, the man convicted of killing Stephen Lawrence, told his parole hearing that he had punched the teenager "as he was on his knees", according to the Daily Mirror. Norris has "refused to name his racist gang mates", the paper reports, prolonging "the anguish of his victim's parents".

"The never ending Tory" is the lead for the Daily Star, which reports on the 7ft 2in tall James McAlpine, a 22-year-old supporter of the Conservative Party. Badenoch reportedly "loves" her "stand-out new recruit", who is focused on tackling "Labour's Farmageddon". "That's a tall order" the paper writes for good measure.