Sir Keir Starmer's first major immigration policy is on the brink of crisis as local councils across England launch a rebellion against Labour's 'unfunded' and 'rushed' plan to end the use of hotels for asylum seekers.
Councils in Open Revolt Over 'Unworkable' Plan
In a dramatic blow to the new government, town hall leaders have issued a stark warning: without immediate cash and a detailed strategy, the flagship pledge is doomed to fail. The Mirror can reveal that several local authorities have already signalled they will flatly refuse to cooperate, plunging the policy into immediate disarray just days after the election.
One furious council leader branded the plan "desperate", while another warned of "catastrophic" consequences for local communities already stretched to their limit.
The £3.5 Billion Hotel Bill Labour Inherited
Labour's ambitious plan to clear the Tory-born asylum backlog and shut down hundreds of expensive hotels was a cornerstone of their election campaign. The previous government's system left taxpayers footing a staggering £3.5 billion bill for housing asylum seekers in temporary accommodation.
However, the new Home Secretary, Yvette Cooper, now faces an impossible trilemma: find more money for councils, somehow force them to comply, or face the embarrassing spectacle of the policy collapsing before it even begins.
A Looming Standoff Between Whitehall and Town Halls
The core of the dispute lies in funding and feasibility. Councils argue they are being asked to perform a Herculean task with no new resources and no time to prepare.
- No New Money: Town halls report there is no new funding attached to the demand to find alternative housing.
- Empty Promises: Leaders complain of being kept in the dark, with no detail on how the government will actually stop hotel use.
- Sheer Scale: The number of people currently in hotels makes a rapid transition logistically nightmarish.
This sets the stage for a major standoff between central government and local authorities, testing Labour's authority and its ability to govern effectively.
What Happens Next?
With councils digging in their heels, the Home Office is under immense pressure to produce a credible plan—and fast. The eyes of the nation are on Yvette Cooper to see if she can negotiate a way out of this self-made crisis or if one of Labour's first promises will be broken before the summer is out.
