Rachel Reeves has pledged to bring an end to the government’s use of hotels to house asylum seekers, calling the current approach “costly” and inefficient. However, the change will not take full effect for several more years.
During her recent Spending Review speech in Parliament, the Chancellor confirmed that the use of hotels for this purpose would cease by the end of the current parliamentary term. Given that the next general election is expected in 2029, this marks a long-term commitment rather than an immediate shift.
In addition to phasing out hotel accommodation, Reeves also announced a planned £1 billion in savings through accelerating the asylum process. She also committed a further £280 million in funding over the coming years to support the development of a new Border Security Command.
Addressing MPs in the Commons, Reeves criticised the previous administration’s handling of the asylum system. She stated that the opposition party had left behind a broken model which placed a heavy financial burden on taxpayers and local communities.
Reeves said: “The party opposite left behind a broken system: billions of pounds of taxpayers’ money spent on housing asylum seekers in hotels, leaving people in limbo and shunting the cost of failure onto local communities. We won’t let that stand.”
She added that the current government, led by the Home Secretary, would ensure that the use of hotels to house asylum seekers would end during this Parliament. However, her announcement has been met with scepticism by critics.
Some members of the Conservative party argue that removing asylum seekers from hotels may simply result in them being relocated to private rental accommodation across the country, potentially placing further pressure on housing.
Concerns were also raised about the government’s approach to speeding up asylum decisions. Critics suggested that quicker decisions could lead to a greater number of approvals, which might encourage more people to attempt to enter the UK.
Julia Lopez, a Conservative MP, expressed her concerns on social media. She argued that the Home Office appeared more focused on removing individuals from their books than on ensuring sustainable long-term solutions.
She added: “That means more positive asylum decisions – only making it more attractive to cross. And so it will go on.” Her comments suggest that without robust deterrents, the issue may continue to escalate.
Shadow Home Office Minister Matt Vickers also responded, questioning the practicality of the Chancellor’s plan. He pointed out that without a clear strategy for deporting illegal immigrants, the policy could simply relocate the problem rather than resolve it.
Vickers remarked: “Rachel Reeves claims Labour will ‘end the use of asylum hotels’. But if they won’t commit to deport all illegal immigrants, where will they go? Coming to a house on your street?”
Government data reveals that in the 2023–24 financial year, £3.1 billion was spent specifically on hotel accommodation for asylum seekers. This formed the bulk of the £4.7 billion overall asylum support expenditure.
Currently, more than 30,000 asylum seekers are being housed in roughly 200 hotels across the UK. Ministers are exploring alternative housing options, including repurposing vacant tower blocks and unused student accommodation.
However, questions remain over the long-term financial sustainability of these changes. The Spending Review document released by HM Treasury indicates that the Home Office’s budget is set to fall by 2.2% in real terms by 2028–29.
This means funding will decrease slightly from £22 billion this year to £22.3 billion over the next four years, raising doubts about the department’s capacity to implement such wide-reaching reforms effectively.
Amid this, Downing Street recently had to deny speculation that Home Secretary Yvette Cooper was considering resigning. Reports suggested tensions had risen between Cooper and Reeves over the Home Office’s allocated budget.
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