Govt’s plan to clamp down on illegal migration could spark ‘perma-backlog’ and cost taxpayers £6bn a year

Published

2 years ago

August 22, 2023

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Home Office plans to clamp down on illegal migration risk creating a “perma-backlog” of asylum seekers that could end up costing the taxpayer over £6bn a year, a think tank has said.

Researchers at the Institute for Public Policy Research (IPPR) argue that measures in the Illegal Migration Act – which aims to detain and remove people who arrive in the UK illegally – could see thousands of asylum seekers stuck in “limbo” and in need of accommodation.

A key plank of the Act is the Rwanda scheme, where those who arrive illegally will be deported to the east African nation in what the government hopes will act as a deterrent to those coming to the UK in small boats.

However, the policy is currently held up in the courts and no flight to Rwanda has yet taken off.

Now, the IPPR claims that – even if the Supreme Court deems the £120m deal lawful – deportations are likely to be on such a small scale that arrivals will still outpace the number of people who are removed.

With an inability to work or claim asylum legally, those left in limbo will be reliant on costly government support and housing, the think tank warned, while there is also the risk of an expanding undocumented population that is vulnerable to destitution.

It said that even if 500 people are removed per month, annual housing costs of those in limbo could exceed £5bn at current prices within five years.

If only 50 people are removed each month, then housing costs would increase to more than £6bn.

Marley Morris, IPPR’s associate director for migration, trade and communities, said: “There is only a very narrow window for government success on asylum, based on its current plan to forge ahead with the Rwanda deal and the Illegal Migration Act. Even with the Act fully implemented, under most plausible scenarios arrivals will still outpace removals.

“This will mean a growing population of people permanently in limbo, putting huge pressure on Home Office accommodation and support systems – plus a risk of thousands of people who vanish from the official system and are at risk of exploitation and destitution.

“Any incoming government would be likely to face a dire and increasingly costly challenge which it would need to address urgently from the outset – there will be no option to ignore or sideline the crisis it inherits.”

The IPPR analysis come after the government suffered a series of setbacks with regards to its plans to tackle illegal migration.

Rishi Sunak pledged to clear the legacy backlog by the end of 2023 and also made “stopping the boats” one of his five promises to the public ahead of the next election.

But earlier this month, Home Office figures showed that more than 100,000 people had now crossed the Channel in in small boats since records began five years ago.

Almost 18,000 migrants have arrived in the UK after crossing the English Channel so far this year.

In order to cope with the increasing number of arrivals, the government has sought to move asylum seekers out of hotels – which are costing the taxpayer £6m a day – and into alternative sites, including disused military bases and barges.

But the barge plan has not been without controversy after the asylum seekers moved onto the Bibby Stockholm in Dorset had to be removed after Legionella bacteria was discovered on the premises.

The asylum backlog also reached a record high of 172,758 at the end of March.

Shadow immigration minister Stephen Kinnock said: “This report confirms what Labour has been saying all along. The prime minister’s new law is a con which will not solve the chaos in the immigration system the Tories have created.

“Instead, it will make it worse, keeping more people locked in limbo waiting for years for asylum decisions and the taxpayer left footing an almighty bill.”

He said a Labour government would go after criminal gangs to tackle small boat crossings, negotiate a returns deal with the European Union and clear the asylum backlog.

A Home Office spokesperson said: “The Illegal Migration Act will help to clear the asylum backlog by allowing us to detain and swiftly remove those who arrive here illegally. While we operationalise the measures in the Act, we continue to remove those with no right to be here through existing powers.

“We are also on track to clear the ‘legacy’ backlog of asylum cases. It has been reduced by a nearly a third since the start of December and we have doubled the number of asylum decision makers in post over the past two years.”

Politics

Tory MP Patrick Spencer charged with sexual assaults at Groucho Club

Published

12 mins ago

May 13, 2025

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Tory MP Patrick Spencer charged with sexual assaults at Groucho Club

Tory MP Patrick Spencer has been charged with two counts of sexual assault at London’s Groucho Club.

The charges follow two alleged incidents involving two different women at the private members’ club, in Soho, in August 2023, the Crown Prosecution Service (CPS) said.

Follow live politics updates: Your views on Starmer’s migration speech

Mr Spencer – who is the Conservative MP for Central Suffolk and North Ipswich – will appear at Westminster Magistrates’ Court on Monday 16 June.

A Conservative Party spokesman said Mr Spencer, 37, has been suspended by the Tories and had the whip withdrawn.

The Metropolitan Police said he was charged after attending a voluntary interview at a London police station on 13 March this year.

Frank Ferguson, head of the CPS special crime and counter terrorism division, said: “Following a review of the evidence provided by the Metropolitan Police Service, we have authorised two counts of sexual assault against Patrick Spencer MP.

“The charges follow two alleged incidents involving two separate women at the Groucho Club in central London in August 2023.

“The Crown Prosecution Service reminds all concerned that criminal proceedings against this defendant are now active and that he has the right to a fair trial.

“It is extremely important that there should be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”

Mr Spencer was first elected to Parliament last year with a majority of 4,290.

It is understood he was asked not to attend the parliamentary estate by the Tory chief whip while police enquiries were ongoing.

A Conservative Party spokesman said: “The Conservative Party believes in integrity and high standards. We have taken immediate action.

“Patrick Spencer MP has been suspended from the Conservative Party, and the whip withdrawn, with immediate effect.

“The Conservative Party cannot comment further on an ongoing legal case.”

The Groucho Club, in Dean Street, opened in 1985 and became a renowned meeting place for A-list celebrities and others, including actors, comedians and media executives.

The club was named after the comedian and actor Groucho Marx, who reportedly once said he would refuse to join any club that would have him as a member.

It was originally set up as a more relaxed alternative to traditional gentlemen’s clubs, according to the venue’s website, which adds that members should be in the creative industry “and share the club’s maverick spirit”.

Before becoming an MP, Mr Spencer worked in finance for private equity firm IPGL, a company chaired by his father, former Conservative Party treasurer Lord Michael Spencer.

He later took a job at the Centre for Social Justice think thank before becoming a senior adviser at the Department for Education.

He made his maiden speech in the Commons in July last year during a debate on the MPs’ code of conduct relating to second jobs, during which he said the “most important thing to the people across my constituency” was “restoring a sense of moral probity and public spiritedness to our political system”.

Sky News has contacted Mr Spencer for comment.

Politics

Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M

Published

6 hours ago

May 13, 2025

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Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for 0M

GD Culture Group (GDC), a Nasdaq-listed holding company focused on livestreaming, e-commerce and artificial intelligence-powered digital human technology, plans to raise up to $300 million for a cryptocurrency treasury reserve.

In a May 12 statement, GDC and its subsidiary, AI Catalysis, announced entering into a common stock purchase agreement with a British Virgin Islands limited liability company to sell up to $300 million of its common stock.

The proceeds from the stock sale will be used to fund the firm’s crypto treasury, which will include purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.

“Under this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations,” the company said in the announcement.

GDC described the strategy as a move to align with the broader “decentralization transformation.”

Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M — *GDC stock price, 1-year chart. Source: Nasdaq*

Founded in 2016, GDC is a micro-cap company with a current $34 million market capitalization, according to Nasdaq data.

GDC’s chairman and CEO, Xiaojian Wang, said the initiative builds on the company’s strengths in digital technologies and positions it for a blockchain-powered industrial shift.

“GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies and the livestreaming e-commerce ecosystem,” Wang said.

The stock offering was announced over a month after the firm received a noncompliance warning from Nasdaq related to its stockholders’ equity. The notice indicated that the firm reported stockholders’ equity of only $2,643, well below the minimum requirement of $2.5 million.

The firm was given until May 4 to submit a plan to comply with the listing requirements. If accepted by Nasdaq, the compliance plan will allow up to 180 days from the notification period to comply with the requirements.

The Nevada-based company joins a small but growing group of public firms that are allocating part of their balance sheets to crypto assets.

Trump token dinner planned for top holders

GDC’s announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22.

However, the TRUMP memecoin project said in a May 12 X post that it has stopped considering additional purchases for the dinner and that the attendees had been notified to apply for background checks.

According to data provided on the project’s leaderboard, the top 220 wallets held more than 13.7 million tokens as of May 12, worth about $174 million at the time of publication.

White House, Donald Trump, Corruption, Memecoin — *Top 10 TRUMP memecoin holders as of May 12. Source: TRUMP memecoin project*

Some US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly said that the idea of the US president offering exclusive access for people willing to pay “gives [her] pause.”

Crypto regulation experts also fear that the Trump family’s crypto endeavors may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

Politics

Man arrested over arson attacks after fire at Sir Keir Starmer’s house

Published

6 hours ago

May 13, 2025

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Man arrested over arson attacks after fire at Sir Keir Starmer's house

A 21-year-old man has been arrested over a series of arson attacks, police have said, after a fire at a house owned by Prime Minister Sir Keir Starmer.

The suspect was arrested in the early hours of Tuesday on suspicion of arson with intent to endanger life, according to the Metropolitan Police.

He remains in custody.

Emergency services were called to fires at the doors of two homes in north London within 24 hours of each other – one just after 1.35am on Monday in Kentish Town and the other on Sunday in Islington. Both properties are linked to Sir Keir.

Detectives were also checking a vehicle fire last Thursday on the same street as the Kentish Town property to see whether it is connected.

Part of the area was cordoned off as police and London Fire Brigade (LFB) investigators examined the scene.

Neighbours described hearing a loud bang and said police officers were looking for a projectile.

The prime minister is understood to still own the home, which was damaged by fire on Monday, but nobody was hurt. Pictures showed scorching at the entrance to the property.

Sir Keir used to live there before he and his family moved into 10 Downing Street after Labour won last year’s general election. It is believed the property is being rented out.

In the early hours of Sunday, firefighters dealt with a small fire at the front door of a house converted into flats in nearby Islington, which is also linked to the prime minister.

In a statement, police said: “As a precaution and due to the property having previous connections with a high-profile public figure, officers from the Met’s Counter Terrorism Command are leading the investigation into this fire.

“Enquiries are ongoing to establish what caused it. All three fires are being treated as suspicious at this time, and enquiries remain ongoing.”

The prime minister’s official spokesman said: “I can only say that the prime minister thanks the emergency services for their work and it is subject to a live investigation. So I can’t comment any further.”

Kemi Badenoch has condemned the suspected arson attacks.

Writing on X, the Conservative leader said: “This is a shocking incident. My thoughts are with the prime minister and his family. No one should face these sorts of threats, let alone people in public service.

“It’s an attack on our democracy and must never be tolerated.”

Shadow justice secretary Robert Jenrick told Sky News on Tuesday: “It’s important that the prime minister and anyone in public life has their family, their homes, protected.

“It is absolutely wrong, disgraceful, for any individual to take the kind of action that we saw against the prime minister’s home.”