The 'very unsatisfactory' failure meant security services could not respond, a senior counter-terrorism police officer says.
Butt, 27, was assessed that same month by the security service as a"strong risk" of staging a terror attack on his own, but investigators decided he was"aspirational" in wanting to stage an attack and did not have the ability to do so.
Police decided not to charge him with possession of extremist material because it was unlikely to disrupt any potential terror plot.Witness M said:"We were still investigating a potential attack. My view was, and is now, that had we moved to arrest him for potential dissemination of extremist material, it was unlikely to result in any significant disruption."
The inquest was told Butt had associated with members of banned terrorist group Al-Muhajiroun, including Siddhartha Dhar, who went on to fight for Islamic State, and hate preacher Anjem Choudary. In early 2016, Butt appeared in a Channel 4 documentary called The Jihadis Next Door, although witness M said he was not"personally aware" of the TV appearance.Butt and two accomplices, Rachid Redouane, 30, and Youssef Zaghba, 22, killed eight people and injured 48 others in a van and knife attack at London Bridge and Borough Market on 3 June 3 2017.
The gang mowed down pedestrians on the bridge before rampaging through Borough Market, stabbing innocent people at random. All three were shot and killed by police.
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