Reeves Pledges to End Asylum Seeker Hotel Use by Next Election

Spending Review Key Points:

• £29bn extra day-to-day NHS spending
• £39bn on social housing
• End of asylum hotels
• No zero-hour contracts
• £11bn in extra defence spending

Chancellor Rachel Reeves has announced plans to stop housing asylum seekers in hotels by the time of the next general election. The move, part of the government’s latest spending review, aims to cut costs and reduce the asylum backlog. 

Reeves revealed an additional £280 million per year in funding for Border Security Command, emphasizing stronger border controls and faster processing of asylum claims. The government claims this will save taxpayers £1 billion annually by reducing reliance on expensive hotel accommodations. 

“The previous administration left behind a broken system—billions wasted on hotels, leaving people in limbo and burdening local communities,” Reeves told the House of Commons. “We will not let that continue.” 

The announcement follows growing tensions over asylum housing, including last summer’s riots targeting migrant accommodation. The government is reportedly considering alternatives such as repurposed tower blocks and former student housing. 

Home Office Minister Dame Angela Eagle confirmed that officials are evaluating medium-sized sites to replace hotels. However, concerns remain over delays in clearing the asylum backlog, with sources suggesting the task is more challenging than initially expected. 

The spending review also outlined major investments in the NHS (£29bn), social housing (£39bn), and defence (£11bn), alongside a ban on zero-hour contracts. 

Stay with Danchima Media for further updates on this developing story.