The Crown Prosecution Service has decided that Damian Green, the MP arrested by anti-terror police, should not be prosecuted and nor should the civil servant suspected of leaking Home Office information.
Coupled with a critical report from the Home Affairs Committee, the decision adds to Home Secretary Jacqui Smith's embarrassment - although given recent events it seems her embarrassment threshold is quite high.
The Committee found senior civil servants played up an imaginary threat to national security posed by the leaks in order to encourage the police to take action. They arrested Green - the shadow immigration minister - and searched both his homes and Parliamentary office. Civil servant Christopher Galley was also arrested and questioned.
Neither will now face prosecution relating to these charges.
Director of Public Prosecutions, Keir Starmer, said: "I have concluded that the information leaked was not secret information or information affecting national security: It did not relate to military, policing or intelligence matters. It did not expose anyone to a risk of injury or death. Nor, in many respects, was it highly confidential.
"Much of it was known to others outside the civil service, for example, in the security industry or the Labour Party or Parliament."
Starmer said because of this there was no realistic chance of convicting either Green or Galley.
The DPP considered alleged offences of misconduct in public office against Galley, and alleged offences of aiding, abetting, counselling or procuring that offence by Damian Green as well as a charge of conspiracy.
The full CPS advice to the Met Police is here. ®