I have to say that I would be more shocked if our 'security services' were not doing this.
The long term problem I see is that it has just got out of hand and your (RIPA enabled) local council can delve into your comms at will if they can come up with some law breaking (wrong rubbish, wrong bin) activity that you are involved in.
It is one thing to 'spy' upon potential enemies and quite another to use that as an excuse to monitor your home population in order to help some local council fuckwit in its upcoming court case.
Mi(?) monitoring 'foreign activities' I can live with. Who wants some IRA bomb exploding in my local shopping centre?
But ... The ability of 'Sir' Cyril Smith (via his contacts in Government and 'The Party') or Savile (via his local council and BBC contacts) being allowed to monitor the activity of anyone who gets close to their 'activities'... Well now we see the problem in giving any 'government' employed wank stain (on childrens bed sheet) the ability to shut down any 'journalist or 'victim' that might come close to exposing them.