Town halls to foot the bill for Labour's 'savings' on asylum costs

Forecast savings on the asylum system were dismissed as a ‘con’ last night as Labour was accused of planning to shift the cost on to town halls.

The Treasury said it would generate ‘significant savings’ by cancelling the Rwanda plan and speeding up asylum processing – leading to a ‘total saving of [more than] £4billion’ over two years.

But, as Chancellor Rachel Reeves slashed the Home Office’s budget yesterday, Tories accused her of planning to make town halls and council taxpayers foot the bill instead.

In the summer, Labour was accused of launching an ‘asylum amnesty’ when it began processing tens of thousands of refugee claims which the Conservatives had placed on hold.

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When an asylum claimant’s case is successful, the cost of supporting them shifts from the Home Office to local authorities.

But yesterday’s Budget papers refer to new ‘council tax flexibilities’ – which could mean asylum costs end up simply being transferred to council tax bills.

Tory leadership candidate Robert Jenrick accused Labour of ‘attempting to con the public’, saying: ‘Its shameless attempt to fiddle the figures will only see the huge costs transferred elsewhere in the system. 

And now it’s scrapped – not strengthened – the Rwanda deterrent, the small boats crossings are rising and the bill will only spiral.’

Shadow home secretary James Cleverly said: ‘Home Office spending is being cut and transferred to rising local government and welfare budgets to pick up the tab for Labour’s asylum amnesty.’

It came as another migrant tragically died in the Channel yesterday – the sixth death in two weeks. 

The 28-year-old man was declared dead after a dinghy got into difficulties off northern France, while another two bodies were found at a beach.