A SUSPECTED spy who is accused of possessing explosive equipment has not been suspended from his job, bosses have revealed.

Former Territorial Army trooper Peter Stephen Hill, 23, appeared in court on Monday, accused of possessing a number of items, which it is alleged could be used to make a bomb.

Hill, who is from Colne and attended Clitheroe Royal Grammar School, has also been bailed until November 29 in connection with alleged breaches of Section One of the Official Secrets Act, which covers passing information that could be helpful to an enemy.

But his employers at Skipton Building Society, where he works as a risk analyst, have revealed that he has not been suspended due to the allegations.

A spokesman said that Hill was still in their employ, but was "currently off work because of an unrelated matter".

The Skipton Building Society spokesman said: "Following the arrest of a member of staff under a private matter, Skipton Building Society is currently aiding police in their investigation.

"It should be stressed, however, that the nature of the police inquiry in no way involves the society."

The headmaster at Hill's former school, Park Primary, said that staff had been surprised to hear about his arrest.

Headteacher Johaan Hale said: "I think anybody would be surprised at such an allegation, although I did not know him.

"One of our staff did and said he was a super lad who was actually a member of our governing body when he was a student.

"He was a lovely lad, a very good pupil and we are all surprised."

Metropolitan Police officers arrested Hill last Wednesday at an address in Leeds after an undercover operation in which an officer is believed to have posed as a Kremlin agent. Two properties were subse-quently searched in Skipton, and at the weekend Hill, who was living at Lambert Street, Skipton, was charged with possessing explosive material.

He appeared before Leeds magistrates on Monday.

Hill was granted bail and his solicitor Grahame Stowe said outside court that the charge he faced was "spurious and without foundation."

Mr Stowe refused to comment about the spying allegation.

Clitheroe Royal Grammar School head Judith Evans declined to comment about Hill as he was not a student when she took up her role.