0h 45min, jun 11, 2025 y - UK to End use of Asylum Hotels

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The government has set out plans to end the use of hotels to hold asylum seekers by 2029, a move Rachel Reeves says will save £1bn a year.

Unveiling her Spending Review on Wednesday, the chancellor pledged £200m to "cut the asylum backlog, hear more appeal cases and return people who have no right to be here".

Ministers say hotels will be phased out by cutting small boat crossings and building new government-owned accommodation for asylum seekers.

The announcement comes after the National Audit Office (NAO) predicted asylum housing costs will hit £15.3bn over the next decade - triple the amount budgeted by the Home Office.

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