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Victims are no longer reporting some crimes to police because so many offenders are never brought to justice.

A new report said the public are losing faith in the criminal justice system and have «rumbled» that police do not have the capacity to investigate.

The constabulary inspector said a suspect was charged in just 7.8% of crimes in England and Wales in the year to March 2019. The Home Office said action should be taken if forces are not performing.

It came as a report by the spending watchdog warned the government could run out of prison places in two years because of tougher sentencing measures, combined with a drive to recruit 20,000 police officers.

The National Audit Office (NAO) said ministers have failed to deliver a promised 10,000 new prisoner places. But the Ministry of Justice said it would «always have enough prison places».

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Ministers are aiming to pass emergency legislation to block the automatic early release of convicted terror offenders before the next one is due to be freed in three weeks’ time.

Sunderland shopkeeper Mohammed Zahir Khan, 42, is expected to be released on 28 February after serving half of his sentence for encouraging terrorism. An official said legislation would be introduced to the Commons on Tuesday. It follows attacks in recent months by men convicted of terror offences.

Khan was arrested in 2017 and given a four-and-a-half year sentence in May 2018 after pleading guilty. He had posted a statement on a Twitter account from the Islamic State group calling for attacks. He also admitted a charge of distributing material designed to incite religious hatred after calling for Shia Muslims to be burnt alive.

The government’s emergency measures, which require backing from Parliament, would postpone his release until the Parole Board has given its approval.

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Iran’s top court has confirmed a death sentence for a man convicted of spying for the CIA.

Amir Rahimpour «earned a lot of money» to pass on information about Iran’s nuclear programme to the US, judiciary spokesman Gholamhossein Esmaili said. He added that «two more American spies» had been sentenced to 10 years in prison for espionage and five years for acting against national security.

Mr Esmaili did not name them, but said they had been working for a charity.

There was no immediate comment from the US government or the CIA (Central Intelligence Agency). But in July US officials cast doubt on an announcement by Iran that it had arrested 17 spies who were allegedly collecting information on the country’s nuclear and military sectors for the CIA. The ministry said some had been sentenced to death.

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Several streets in central London have been cordoned off for a second time in 24 hours after part of an unexploded World War Two bomb was found.

On Tuesday, Scotland Yard confirmed on Twitter «another part of yesterday’s WW2 ordnance [has] been discovered».

Properties on Dean Street, Richmond Mews, Meard Street and St Anne’s Court have been evacuated.

Bateman Street has also been closed.

Police have been searching the hostel where the Streatham attacker is believed to have been living.

Sudesh Amman, 20, was shot dead by police on Streatham High Road after stabbing people in what police called an Islamist-related terrorist incident. He had been released from prison about a week ago after serving half of a sentence for terror offences, and was under police surveillance.

Three people were injured but none is in a life-threatening condition.

Scotland Yard said officers were searching residential addresses in south London and Bishop’s Stortford, Hertfordshire.

On Monday, officers were seen cordoning off a hostel in Streatham, where the manager said Amman had been living. They added: «I didn’t have much to do with him. «Everyone has their own rooms in there. The last time I saw him I was doing his radiator, setting up his heating on Friday. He didn’t speak much.»

The Met Police, whose Counter Terrorism Command officers are leading the investigation, said no arrests have been made and «inquiries continue at pace».

Mayor of London Sadiq Khan says there were about «70 plus» people convicted of terrorism offences who had been released, and called for reassurances from the government they are being «properly punished and reformed».

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