A terror suspect banned from London told how he wants to resume plotting when he returns to the capital, once anti-terror laws are watered down.

Known as BM, he could be back in London months before the Olympics under the Government’s decision to drop powers to relocate individuals deemed a national danger.

He has appealed against his ban from the capital, though his lawyers admitted at the High Court that he is “committed to terrorism, in particular to terrorism in Pakistan“.

The court heard that he wants to go to Pakistan “to take part in, or assist others to take part in, terrorist acts”. He was also said to want to help finance terrorism there, or go under cover in the UK in order to do so.

Labour attacked Home Secretary Theresa May after tabling an amendment to block the reforms in the Terrorism Prevention and Investigation Measures Bill, which was being debated by MPs today.

Shadow home secretary Yvette Cooper said Mrs May was “playing Londoners for fools”, adding: “She is still persisting with dangerous weakening of counter-terrorism measures which will allow more serious suspected terrorists to remain in the capital.”

She highlighted the case of BM, a 38-year-old British national. Born in Sheffield and father of five young children, he had been living in Ilford but was banned from London, on the orders of Mrs May, to stop him allegedly channelling funds to his brothers in Pakistan.

BM is said to maintain contacts through his family with individuals in Pakistan who “represent a threat to UK national security”.

From This is London

Seeking to overturn the ban, he highlighted the Government’s plans to ditch relocation powers as lending weight to his claim that his forced relocation was excessive.

The security services and police are understood to have concerns over the change to anti-terror laws. Mrs May has responded to a backlash by proposing a new Bill which will allow relocation powers to be used in exceptional circumstances.

A Home Office spokesman said: “National security is the primary duty of government and we will not put the public at risk.

“Our absolute priority is to prosecute and convict suspected terrorists in open court. The new system will provide effective powers for dealing with the risk posed by individuals we can neither prosecute nor deport.

“We have always said there may be exceptional circumstances where it could be necessary to seek parliamentary approval for additional restrictive measures.”

Anti-terrorism experts say suspects will need far greater, costly surveillance which will not fully eliminate the additional risk they pose from not being relocated.