A senior diplomat is now established as Britain’s counter-terrorism chief, with unprecedented coordinating powers in Whitehall.

Charles Farr, 48, who was seconded from the Foreign and Commonwealth Office last month, has already built up a staff of 100 civil servants at the Home Office to help him to mastermind the Government’s counter-terrorism strategy and find ways to prevent young Muslims from becoming radicalised into suicide bombers.

A further 100 civil servants are being recruited from across Whitehall. Some could be intelligence analysts drawn from MI6 and MI5.

Whitehall sources said that Mr Farr’s remit included examining the security challenges posed by the 2012 Olympic Games in London. He is also recruiting security technology experts.

Mr Farr’s appointment, as Director-General of the new Office for Security and Counter-Terrorism, was announced last month. But the significance of the appointment and his place in the pecking order of senior officials dealing with international terrorist issues was not made clear.

Mr Farr served as a diplomat in South Africa and Jordan, but since 2003 has held senior posts concerned with security and counter-terrorism. Whitehall sources said that he was now the key figure behind the Government’s drive to develop strategies to deal with international terrorism.

The Home Office has always been the lead department for counter-terrorism, but with so many other responsibilities John Reid, the former Home Secretary, suggested splitting some of the roles with a new Justice Ministry and turning his department into a national security establishment that would also embrace the intelligence agencies. The division of labour was approved and Jack Straw is now the Justice Secretary, but the absorption of all the intelligence agencies under the Home Office was rejected.

However, Mr Brown agreed that the Home Office should have a single powerful figure focusing on counter-terrorism. After an open competition, Mr Farr was selected for the £160,000-a-year role. A Whitehall source said: “The Home Office is lucky to get him. He is a driven and highly intelligent individual.”

MI5, MI6 and GCHQ retain full control of the operational side of countering terrorism, along with the police, but the heads of the agencies will be expected to work closely with Mr Farr.

Individual ministries will still have significant roles to play. The Communities and Local Government Department retains overall responsibility for tackling the problem of disaffected, radicalised Muslims. But Mr Farr will be trying to come up with ideas to push the department in the right direction.

As part of the Government’s drive to win hearts and minds against terrorism, a centre is being set up in the Home Office called the Research, Information and Communications Unit.

To underline Mr Farr’s primacy, a senior security and intelligence appointment in the Cabinet Office currently held by a permanent secretary is to be downgraded when Sir Richard Mottram, retires in the autumn.

Robert Hannigan, at present Director-General (political) at the Northern Ireland Office, is to become head of Security, Intelligence and Resilience, and Security Adviser to the Prime Minister, but not a permanent secretary. Mr Hannigan will not take on Sir Richard’s role of chairman of the Joint Intelligence Committee. The selection process for that job will begin soon.

Who’s who

Ministerial committee on security and counter-terrorism

Chaired by Prime Minister

Operations

Jonathan Evans Director-General M15
Sir John Scarlett Chief of MI6
Sir David Pepper Director of GCHQ

Policy

Charles Farr Director-General, Office for Security and Counter-terrorism, Home Office
Sir Richard Mottram Secretary for Security, Intelligence and Resilience, in Cabinet Office (retiring)
Robert Hannigan Incoming head of Security, Intelligence and Resilience

Intelligence assessment

Sir Richard Mottram Chairman of the Joint Intelligence Committee (retiring)

Research

Jonathan Allen Head of Research Information and Communications Unit at the Home Office

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