Britain is developing a fleet of spy balloons in an intelligence arms race with China.

The military has successfully tested high-altitude craft which ministers say will give the Armed Forces “the edge” on intelligence gathering.

The uncrewed vehicles can provide surveillance and communications links, such as internet services, from an altitude of up to 80,000ft.

Britain’s move to develop its own fleet comes two years after the US air force shot down a Chinese spy balloon off the South Carolina coast.