Taxpayers are currently footing a £5.5 million daily bill for migrant hotel accommodations, but a Treasury review has found that “global instability” and a lack of housing alternatives make shutting them down unfeasible. The Office for Value for Money, reviewing Home Office spending, cautioned that illegal migration will continue, forcing reliance on temporary housing.
Despite Starmer’s campaign vow to “scrap asylum hotels and save billions,” the number of migrants in hotels has risen by 8,000 since Labour came to power. The government is also under fire for £4.6 billion in long-term contracts with private firms accused of exploiting the crisis.
A government spokesperson said: “We inherited a dysfunctional asylum system and are acting swiftly—speeding up processing, boosting deportations, and targeting smuggling networks.” Yet critics say the failure to reduce hotel reliance highlights Labour’s difficulties in handling migration, with Channel crossings projected to hit record levels this year.
The issue compounds Starmer’s mounting political pressures, including disputes over welfare reductions, tax increases, and internal dissent over budget cuts.
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