The accommodation, off the coast of Dorset, is ultimately intended to house 500 single men – though that is less than 1% of the people waiting for their claims to be heard.
Image: People, believed to be migrants, were brought to Dover following a small boat incident in the Channel on Thursday
Image: More than 40 people are thought to have arrived in the UK on Thursday having tried to cross the Channel in a small boat
As well as barges, the government wants to use tents and military bases as cheaper forms of accommodation than hotels, which the Home Office says are costing taxpayers £6m a day.
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But Labour argues the new sites are being used in addition to hotels, not instead of, and ministers should focus on cutting the asylum case backlog and targeting people-smuggling gangs.
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2:02
What’s it like onboard the Bibby Stockholm?
The government ultimately wants to deport people who arrive by small boat to Rwanda, but the £140mn scheme has been stalled since last June due to a series of legal challenges, meaning no one has been sent to the east African nation yet.
Deputy Tory chairman Lee Anderson, who was embroiled in a row this week after saying migrants who did not like barges should “f*** off back to France”, admitted the government was failing on immigration.
Image: The Bibby Stockholm is being used as an accommodation vessel for asylum seekers
Central to the prime minister’s “stop the boats” pledge is the controversial Illegal Immigration Bill, which was passed last month after the government saw off multiple challenges in the Lords.
This will ban anyone who enters the UK through unauthorised means from claiming asylum, allowing the government to deport them.
Flashy, headline-grabbing policies are not stopping the boats
A grim yet inevitable milestone that the prime minister will have been dreading – the number of people crossing the Channel in small boats looks likely to have finally reached 100,000.
The timing of these figures will not have been lost on Rishi Sunak – it is “small boats week” after all.
Having already seen Tory party deputy chairman Lee Anderson this week undermine the government’s efforts to stop the boats – admitting his party’s immigration policy has failed – this week has certainly not gone to plan for the government.
But it’s numbers like these that underpin Mr Anderson’s frustrations.
With crossings having increased at an astonishing rate under 13 years of a Conservative government, despite their best efforts, the Tories will find it incredibly difficult to spin that this rise in crossings is on Labour.
What’s more is that these figures are in direct conflict with government rhetoric: talking tough and announcing policies to curb Channel crossings.
But the facts speak for themselves. Flashy policies like relocating people to Rwanda evidently aren’t working.
Rishi Sunak has asked voters to judge him on his record and delivery on his five pledges, but this particular pledge looks set to continue to cause him considerable political pain.
Officials are still working on when the legislation will come into force. Questions remain about whether the bill will comply with international law, and where people will be sent if their home countries are not safe and returns agreements are not in place.
Ministers have hinted at leaving the European Convention on Human Rights (ECHR), a treaty that underpins the country’s duty to help migrants, to better protect the UK’s borders.
But reports on Thursday suggested Mr Sunak’s cabinet is split on the matter, as the move would put the UK at odds with the majority of European nations and could also cause complications over the operation of the Good Friday Agreement in Northern Ireland and post-Brexit deals with the EU.
A Home Office spokesperson said on Thursday: “The unacceptable number of people risking their lives by making these dangerous crossings is placing an unprecedented strain on our asylum system.
“Our priority is to stop the boats, and our Small Boats Operational Command is working alongside our French partners and other agencies to disrupt the people smugglers.
“The government is going even further through our Illegal Migration Act which will mean that people arriving in the UK illegally are detained and promptly removed to their country of origin or a safe third country.”
The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.
Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.
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Lord Kinnock calls for ‘wealth tax’
Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”
While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.
Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.
Image: Will Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer impose a wealth tax? Pic: PA
What is a wealth tax?
A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.
It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.
The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.
Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.
A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.
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1:51
Wealth tax would be a ‘mistake’
How could it work in the UK?
Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.
Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.
Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.
The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.
Which countries have or have had a wealth tax?
In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.
France and Italy levy wealth taxes on selected assets.
Colombia
Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).
The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.
Image: Bogota in Colombia, which has a wealth tax
Norway
There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.
Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).
Image: Norway has both a municipal and state wealth tax. Pic: Reuters
The maximum combined wealth tax rate is 1.1%.
The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.
Spain
Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.
Image: Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters
The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.
It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.
Switzerland
All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.
Image: Zurich is Switzerland’s wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters
It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.
Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.
The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.
Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.
Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.
Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.
Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.
Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.
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British Steel has not yet been formally nationalised, although that remains a probable outcome.
Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.
Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.
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3:31
Inside the UK’s last blast furnaces
Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.
News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.
Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.
Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.
“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”