Alternatively (and more likely I suspect), these is some gamesmanship being played to get shiny new additional super-snooping laws passed because it's needed to cope with all this uncrackable terrorist encryption. See, here's the proof it exists ! [edit: sorry, this did not make it clear I'm suggesting it was cracked but found to be irrelevant to the terrorism case. I've expanded in a reply below.]
The UK already has laws making it an offence to have 'have information' 'which may be of use to anyone planning a terrorist offence'. This is so broadly defined that railway enthusiast pictures of trains could fall into it (and have been questioned under it - http://www.telegraph.co.uk/news/uknews/road-and-rail-transpo...)
The UK's unwritten constitution is not worth the paper it's written on. Unfortunately the US written one seems to be about as useful in protecting peoples rights these days as the UK one. (See previous HN stories of your choice)