Burnham Allies Reveal Plan to Rip Up £15.3 Billion Asylum Hotel Contracts – But Is It Another U-Turn?

Allies of Greater Manchester Mayor Andy Burnham claim he would tear up the Labour government’s multi-billion-pound asylum hotel contracts if he became Prime Minister, shifting responsibility to local councils. This comes as the Home Office refuses to activate break clauses in the decade-long deals, despite costs soaring to £15.3 billion.

Labour’s Asylum Contract Failure Exposed

The Labour government is under fire after GB News reported that allies of Andy Burnham claim he would terminate the controversial asylum accommodation contracts currently held by private providers. These contracts, signed in 2019, have seen their estimated cost skyrocket from £4.5 billion to a staggering £15.3 billion over ten years, according to the National Audit Office.

Despite these colossal figures, Home Secretary Shabana Mahmood is reportedly unwilling to activate break clauses that became available in March. Ms Mahmood acknowledges the existing contracts are “terrible” but claims there are no viable alternatives, leaving the Home Office dependent on private firms like Serco, Mears, and Clearsprings Ready Homes, who are permitted profits of up to 5 per cent.

Burnham’s Proposed Overhaul

Mr Burnham’s plan, according to his allies, would see local councils take over the responsibility for housing asylum seekers. This would involve placing them in dispersal housing such as bedsits and shared homes, rather than the expensive hotel accommodation currently in use. A spokesman for Mr Burnham stated to GB News that “hugely profitable outsourced contracts” are “not the basis for a fair asylum system.”

• Asylum hotel contract costs have soared from £4.5 billion to £15.3 billion.
• Home Secretary Shabana Mahmood refuses to activate break clauses in the contracts.
• Andy Burnham’s allies claim he would terminate these contracts if he became PM.
• Burnham’s plan would devolve housing responsibility to local councils, using dispersal housing.
• Home Office officials are sceptical councils can secure the 100,000 beds needed.

What This Means for Britain

This revelation highlights the Labour government’s failure to control immigration spending, leaving taxpayers footing a £15.3 billion bill for asylum hotels. It means your money is being spent on contracts that even the Home Secretary admits are “terrible,” while ordinary families struggle with the cost of living.

The proposed shift to council-led dispersal housing aims to reduce reliance on private contractors and save public funds. However, the Home Office itself doubts whether local authorities have the capacity to secure the vast number of beds required, suggesting a potential future crisis in housing asylum seekers.

For ordinary British people, this means continued uncertainty over who is controlling our borders and how our taxes are being used. The system appears rigged to benefit private companies while the government claims it has no other options.

Burnham’s previous criticism of Ms Mahmood’s stance on asylum policy, followed by this alleged U-turn, raises questions about Labour’s true commitment to tackling the migration crisis. It suggests a party still struggling to present a consistent and credible plan to take back control of our borders and our spending.

Share if you believe the Labour government must take back control of our borders and stop wasteful spending on asylum hotels.

This article is a factual summary of reporting by GB News. Full original story available on their website. All quotes directly attributed.

Source: GB News | Breaking Brexit News