The Atrium hotel near Heathrow was secured by the Home Office for £23m but not required (Image: Humphrey Nemar)

Labour has been urged to revive the plan to send illegal migrants to Rwanda in the wake of revelations the Government blew £23million on a London “asylum hotel” it never needed. The Home Office signed a nine-month deal for the Atrium hotel near Heathrow to house asylum seekers last summer and then found it was not required. The National Audit Office’s recent review of the Home Office’s accounts details how in August 2025 the department “procured the Atrium hotel in London on a nine-month contract” because it “anticipated a surge in demand” that threatened to overwhelm the processing site at former RAF Manston. However, the “hotel was never required, resulting in a constructive loss of £23million.”

The loss has been condemned by the Conservatives, who say the “bill works out at more than £84,000 for every day of a contract for a hotel the department never needed”. Today, the Atrium boasts “573 ultra-chic rooms” and “exceptional dining”, offering “everything you need for a restful, refined stay in London”.

The audit report records how the Home Office spent £3.7billion on asylum in 2025-26 against a budget of £3.6billion. It sets out how costs have radically exceeded initial expectation: “In 2019 the Home Office estimated that the asylum accommodation contracts would cost £4.5billion over 10 years. In 2024, this estimate increased to £15.3billion, due to more people seeking asylum being accommodated in hotels than expected.”

The Atrium Hotel was procured in August last year for nine months but was not required (Image: Humphrey Nemar)

Labour came into power in 2024 on the back of a manifesto pledge to “end asylum hotels, saving the taxpayer billions of pounds”, and Prime Minister Sir Keir Starmer declared the Tory plan to send illegal arrivals to Rwanda for processing “dead and buried” on his first full day in the job.

Shadow Home Secretary Chris Philp said: “Labour promised to close the asylum hotels and yet keep signing contracts for new ones, including the Atrium which it said it never even needed. People are sick of illegal immigrants being foisted on them – whether accommodated in expensive hotels, flats, or military sites.”

He pledged a Conservative government would “deport every illegal immigrant, leaving the ECHR and any other obligation that stands in the way in order to get it done, because the surest way to empty the accommodation is to make plain that nobody who crosses the Channel gets to stay”.

 

Chris Philp wants to bring in a much tougher approach to tackling illegal immigration (Image: Getty Images)

Former Home Secretary Dame Priti Patel called for a revival of the Rwanda plan. She said: “Instead of deporting them, Labour keeps splashing out on asylum hotels and accommodation for illegal migrants… Rather than wasting time and money appeasing their Lefty friends defending illegal migrants, Labour should listen to the British people and deport everyone entering Britain illegal to Rwanda.”

Imran Hussain of the Refugee Council argued that hotel were not the right location for refugees, saying: “People seeking asylum are not allowed to work so the Government has a duty to provide temporary accommodation for people until their cases are decided. But hotels are unsuitable places for refugees, are hugely costly and have become flashpoints for communities and a magnet for the Far Right. The Government deserves credit for halving the numbers in hotels in the past year, but sending people to large former military sites has been tried before and failed. The best way to support people while they await an asylum decision is in temporary Home Office accommodation in communities, as we have been doing for many years.”

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Taxpayers will be furious that the Home Office managed to blow £23million on an asylum hotel it never even needed. Hard-working families are being told to tighten their belts while the government squanders thousands of pounds a day on unnecessary migrant accommodation. Ministers need to end this farce and treat taxpayers’ money with the respect it deserves.”

A Home Office source said: “The Conservatives created the asylum hotels policy, and spent £5billion a year on asylum support. This Government is closing every single asylum hotel, has already saved £1billion, and has cut small boat crossings by around 40%. We don’t need lessons from Chris Philp – a failed former Home Office minister from the Tory Government that left this mess behind.”

INSIDE THE LUXURY HOTEL FOR MIGRANTS WITH JACUZZI AND FINE DINING – HUGE £23M WASTE SPARKS PUBLIC FURY!

A luxury hotel reportedly being used to accommodate migrants has become the centre of a growing political storm, after claims emerged about its expensive facilities, including a jacuzzi, fine dining and other hotel-style services.

The controversy has reignited Britain’s heated debate over immigration, asylum accommodation and the enormous cost of housing people while their claims are being processed.

For families struggling with rising mortgages, rent, energy bills and food prices, the reports have prompted an uncomfortable question: why does the government appear able to fund expensive accommodation for asylum seekers while ordinary British households are being forced to cut back?

The hotel has reportedly been associated with costs reaching £23 million, adding to concerns about the financial burden of Britain’s asylum accommodation system.

However, the precise spending figures, the period covered and the extent to which individual facilities are included in the reported costs need to be examined carefully.

Inside the Hotel at the Centre of the Controversy

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The reports have attracted attention because of the contrast between luxury hotel facilities and the basic accommodation many ordinary people struggle to afford.

Descriptions of the accommodation have highlighted facilities such as leisure areas, restaurant-style dining and high-end hotel amenities.

The mention of a jacuzzi has proved particularly controversial, with critics questioning whether public money should be used to fund facilities that many taxpayers could never afford themselves.

For people facing long waiting lists for social housing or struggling to pay their monthly rent, the apparent contrast has become a source of frustration.

But there is an important distinction between a hotel’s normal advertised facilities and services actually provided or paid for under an asylum accommodation contract.

The public deserves a clear breakdown of what taxpayers are funding.

The £23 Million Question

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The reported £23 million figure has become one of the most controversial aspects of the story.

Britain’s asylum accommodation system costs billions of pounds over time, with the Home Office relying on private contractors to provide housing and support.

Hotels have frequently been used when the government cannot secure sufficient longer-term accommodation.

Critics argue that this approach is expensive and inefficient.

They want ministers to explain:

• How much the hotel accommodation actually costs.
• Whether the £23 million covers one property or a wider contract.
• How many people have been accommodated.
• What services are included in the payments.
• Whether cheaper alternatives were available.

Without those details, taxpayers cannot properly assess whether the spending represents value for money.

British Families Ask Why Their Money Is Being Spent This Way

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The controversy comes at a time when millions of households are facing financial pressure.

Rent, council tax, groceries and energy bills continue to dominate family budgets.

Many people are also struggling to find affordable housing, with some families waiting years for suitable social accommodation.

Against that background, reports of expensive hotel accommodation for migrants have created considerable anger.

Critics argue that the government must demonstrate that public spending is fair and responsible.

They insist that taxpayers should not be expected to fund unnecessary luxury facilities when essential public services remain under pressure.

At the same time, asylum accommodation must meet basic legal standards, including appropriate food, safety and living conditions.

The debate should therefore focus on whether the services being paid for are necessary and reasonably priced.

Why Are Hotels Still Being Used?

The use of hotels for asylum accommodation has become one of the most persistent problems facing successive British governments.

When people arrive in the UK and claim asylum, the Home Office may have a responsibility to provide accommodation if they meet the relevant eligibility requirements and cannot support themselves.

Hotels have been used as temporary accommodation because the government has struggled to provide enough suitable alternatives.

However, hotel accommodation is generally more expensive than purpose-built or longer-term arrangements.

The government has repeatedly promised to reduce reliance on hotels by expanding alternative accommodation and speeding up asylum decisions.

Critics say those promises have not delivered sufficiently rapid results.

Nigel Farage Sees Another Opportunity to Attack Labour

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The controversy provides another opportunity for Nigel Farage and Reform UK to challenge the government’s immigration policy.

Reform has consistently argued that Britain needs stronger border controls, faster asylum decisions and a substantial reduction in the use of expensive hotel accommodation.

Farage’s supporters believe the latest reports demonstrate why the existing system requires fundamental reform.

Labour, meanwhile, argues that tackling organised people-smuggling networks and improving the asylum process requires practical changes rather than political slogans.

The government faces growing pressure to show that its approach is producing measurable savings.

The Government Must Explain Where Every Pound Goes

The most important issue is transparency.

If public money is being spent on accommodation contracts worth millions of pounds, taxpayers should be able to understand exactly what they are receiving in return.

The Home Office should publish clear information about contract costs, occupancy levels, services provided and the alternatives considered.

If unnecessary luxury facilities are being funded at public expense, ministers should explain why.

If the reported costs are being exaggerated or taken out of context, the government should publish the evidence needed to correct the record.

Either way, the public deserves answers.

A Growing Political Storm Over Immigration Spending

The hotel controversy is about more than one building.

It reflects a wider frustration with the cost and effectiveness of Britain’s asylum system.

People want an immigration policy that is controlled, transparent and financially responsible.

They also want a housing system that works for British residents and vulnerable people who genuinely need support.

The government must demonstrate that it can meet its legal obligations without allowing public spending to spiral out of control.

THE BIG QUESTIONS

• Why is the government paying millions for hotel-based asylum accommodation?
• Does the reported £23 million figure represent value for taxpayers?
• Are facilities such as jacuzzis and fine dining actually being funded through public contracts?
• Why are cheaper accommodation alternatives not being used more widely?
• Should the Home Office publish every detail of expensive asylum contracts?
• Can Labour finally reduce the cost of Britain’s hotel accommodation system?

British taxpayers deserve honesty about how their money is being spent. Providing safe and appropriate accommodation is a government responsibility, but that does not mean every contract should escape scrutiny. When public spending reaches millions of pounds, transparency and value for money must come first.