Labour to end hotels for asylum seekers says Rachel Reeves

Chancellor of the Exchequer Rachel Reeves delivers her Government's spending review to MPs in the House of Commons, London. Picture date: Wednesday June 11, 2025. P <i>(Image: PA)</i>
Chancellor of the Exchequer Rachel Reeves delivers her Government's spending review to MPs in the House of Commons, London. Picture date: Wednesday June 11, 2025. P (Image: PA)
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The chancellor, Rachel Reeves, said she will end the use of hotels for asylum seekers.

The chancellor announced the plan today in the Spending Review.

She said putting asylum seekers up in hotels was a costly policy and her plan would save £1billion.

Reeves told the House of Commons the government would “end the use of hotels for asylum seekers by the end of this parliament."

She said that to achieve it, more money will be invested in cutting the asylum backlog and ensuring more hearings took place.

She did not state where asylum seekers would be housed instead.

Glasgow has been home to thousands of asylum seekers, under the UK dispersal programme and many have been housed in hotels in the city.

The city takes in more than nine out of ten asylum seekers in Scotland.

The city council has asked the government to pause sending more asylum seekers to the city as it places unbearable pressure on public services.

The pressure comes as more people are pushed through the process, leading to a rise in homelessness, as hundreds become homeless when they are given leave to remain.

People are moved out of their Home Office-funded asylum seeker accommodation, and then they need to find their own housing.

Many end up homeless and have to be put up by the council in temporary accommodation.

More than half of the people in temporary accommodation in Glasgow are refugees.

There are currently 4887 people with refugee status in Glasgow in temporary accommodation out of a total 8279 people.

In hotels, the picture is similar.

Of the 1972 people in 40 hotels and B&Bs for homeless people, 1417 are refugees.

The chancellor's statement only applies to asylum seekers in hotels and not to refugees.

Glasgow City Council has said the policy of the previous, Conservative, UK Government to speed up hearings and get more people through the asylum process led to the housing emergency in the city.

Allan Casey, the council’s convenor for homelessness, said: “Glasgow City Council acknowledges the UK Government’s commitment to ending the use of hotels for asylum accommodation.

“While we support the principle of moving away from unsuitable and expensive temporary solutions, we must be clear that delivering this ambition will require close and sustained partnership with local authorities.

“We urge the UK Government to engage directly with Glasgow City Council to co-develop a fair and transparent process for dispersal, housing, and support.

“Crucially, this must come with dedicated funding to ensure that we can meet the housing and integration needs of new arrivals without placing additional strain on already stretched services.

“Glasgow has a proud history of integration, but we must be equipped to do so sustainably and in a way that protects the wellbeing of all residents.”

 

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