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© Lesley-Anne McKeown/PAPalace Barracks in Holywood, Northern Ireland, where police believe a bomb was detonated.
An explosive device, believed to have been a bomb hidden inside a postal van, has gone off at the regional headquarters of MI5 in Northern Ireland. There were no reports of any casualties.

Police confirmed they were investigating an explosion inside Palace Barracks in Holywood, Co Down. The base on the eastern edge of Belfast is home to British army regiments as well as an important regional centre for the security services.

The Police Service of Northern Ireland said one line of inquiry they are pursuing is that the Royal Mail van fire was caused by a small bomb detonating inside the vehicle. The fire spread to two other vehicles and at least one garage in the base's car park.

The Guardian understands that the explosion went off 200m from the door to the MI5 compound. As well as housing up to 1,000 MI5 operatives, Palace Barracks is home to the Royal Scots Borderers of the Royal Regiment of Scotland who have been stationed there since August 2014.

Though no one was injured in the explosion and fire, the incident will raise serious security questions if it is confirmed that an explosive device was able to be smuggled into such an important military and intelligence-gathering centre.

In recent years Republican dissidents have attempted to use Royal Mail to post and deliver packages containing hidden bombs. Explosive devices addressed to army recruitment offices as well as government ministers and MPs have been intercepted by Royal Mail.

In 2010 the now defunct Real IRA forced a taxi driver at gunpoint to drive a bomb in his car boot to the gates of the MI5/army base. No one was seriously injured in the blast, although a pensioner living nearby suffered minor injuries, while people living on a housing estate close by Palace Barracks had to be evacuated from their homes.

Suspicion for this latest attack on a key target for anti-ceasefire republican terror groups will fall on either the New IRA or the Óglaigh na hÉireann faction.

All of the anti-peace process republican organisations regard Palace Barracks as a symbol of British rule due to its role as a spying and training centre for MI5. The security service now acts ahead of the police in combating Irish republican paramilitaries throughout the UK.

The former lord mayor of North Down and local Alliance party councillor, Andrew Muir, condemned those behind this latest incident. He said: "If proven that this is a deliberate attack, everyone must utterly condemn it and I would call on all local politicians to unite in signalling that Northern Ireland has no desire to return to the past. Those days are over and we must not allow the thugs behind this incident to succeed in dragging us back.

"Across Northern Ireland people will be sickened by such a blatant attempt to target local military who are welcomed as an integral part of life in Holywood and we must all unite to move forward in creating a stable and peaceful future."

The Democratic Unionist party MLA, Alex Easton, said: "I am deeply angry and concerned that there has been an attempt to kill somebody or soldiers inside Palace Barracks. This is a very worrying development and I would totally and utterly condemn it. I am just relieved no one was seriously injured or killed and I would appeal to anyone who has any information to bring it to police to put those involved behind bars where they belong."