Home Office spent record £5.38bn on asylum over past year

Published

6 months ago

November 29, 2024

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The Home Office spent a record £5.38bn over the last year on asylum – more than a third higher than the previous year.

Figures released on Thursday showed spending on asylum rose by £1.43bn in the 2023/24 financial year to £5.38bn – 36% higher than in 2022/24 when £3.95bn was spent.

The latest figure, covering the Conservatives’ final year in government, is the highest amount since comparable data began in 2010/11.

It is more than four times the equivalent figure for 2020/21 (£1.34bn) and nearly 12 times the total a decade ago in 2013/14 when it was £450m.

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New data has also found the number of asylum claimants living in hotels has increased since Labour came into power in July.

The Home Office costs cover all its spending on asylum, including direct cash support and accommodation for asylum seekers, plus wider staffing and other related migration and border activity.

It does not include the cost of operations responding to Channel crossings and intercepting migrants as they make the journey to the UK.

However, the data suggests most migrants entering the UK on small boats do then end up in the asylum system.

Since Labour came into power, 19,988 people have crossed the Channel on small boats to get to the UK illegally.

The latest asylum spending data is from when the Conservatives were in power and comes as further data revealed net migration to the UK fell by 20% in the year to June 2024 from a record 906,000 the year before.

The Office for National Statistics (ONS) found net migration – the difference been people immigrating and emigrating – stands at an estimated 728,000.

Sir Keir Starmer said his party had inherited an “utter mess” from the Tories as he accused them of reforming policies to “liberalise immigration” and having “lost control of the borders”.

He said the government was “taking a different approach” by cracking down on any abuse of visa routes, setting out a plan to reduce immigration and “smash the gangs” taking people across the Channel.

The prime minister said the cost of processing asylum claims needs to be brought down, as does the use of hotels.

He said the government has redeployed 1,000 Home Office staff to process asylum claims, and said his government has returned 9,600 asylum seekers since July.

Number of asylum seekers in hotels soars

New Home Office data has also revealed 106,181 asylum claimants were in accommodation at the end of September. That is an increase of 9,539 from May this year.

Of those 106,181 asylum seekers, 35,651 were being housed temporarily in hotels due to lack of other accommodation at the end of September, up by 6,066 from 29,585 at the end of June.

It is the first quarterly rise for a year, although the figure is still some way below the recent peak of 56,042 at the end of September 2023.

Labour promised to close asylum hotels in their manifesto, but border security minister Dame Angela Eagle last week said more asylum hotels have opened since the party came into power.

She told parliament there are currently 220 hotels in use for asylum seekers, with seven having shut since July – but 14 more have opened.

Dame Angela said the reason was the situation left by the Conservatives, with 116,000 asylum seekers “stuck in a backlog” of more than two years when Labour came into power in July.

She said the system “ground to a standstill” because the Tories were busy pursuing the Rwanda policy “which was doomed to failure”.

The minister said Labour did not commit “to close all asylum hotels within four months”.

Politics

Civil service relocation and AI officials at heart of government cost cutting measures

Published

57 mins ago

May 14, 2025

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Civil service relocation and AI officials at heart of government cost cutting measures

AI civil servants and sending human workers out of London are at the heart of the government’s plans to cut costs and reduce the size of the state bureaucracy.

Shrinking the civil service has been a target of both the current Labour and recent Conservative governments – especially following the growth in the organisation during the pandemic.

From a low in 2016 of 384,000 full time workers, in 2024 there were 513,000 civil servants.

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The Department for Science, Innovation and Technology is claiming a new swathe of tools to help sift information submitted to public consultations could save “75,000 days of manual analysis every year” – roughly the work of 333 civil servants.

However, the time saved is expected to free up existing civil servants to do other work.

The suite of AI tools are known as “Humphrey”, after Humphrey Appleby, the fictional civil servant in the TV comedy Yes, Prime Minister.

The government has previously said the introduction of AI would help reduce the civil service headcount – with hopes it could save as much as £45bn.

Speaking today, Technology Secretary Peter Kyle appeared to take aim at expensive outsourcing contracts, saying: “No one should be wasting time on something AI can do quicker and better, let alone wasting millions of taxpayer pounds on outsourcing such work to contractors.”

Move outside of London

Other money-saving plans announced today include moving 12,000 civil servants out of London and into regional hubs – with the government hoping it can save almost £100m by 2032 by not having to pay for expensive leases of prime office space in the capital.

Currently, 95,000 full time civil servants work in London.

Tens of millions of pounds a year are expected to be saved by the closure of 102 Petty France, which overlooks St James’s Park, and 39 Victoria Street, which is near the previous location of New Scotland Yard.

In total, 11 London offices are slated for closure, with workers being relocated to the likes of Aberdeen, Belfast, Darlington, Bristol, Manchester and Cardiff.

The reforms of the civil service are being led by Chancellor of the Duchy of Lancaster Pat McFadden – one of Sir Keir Starmer’s most influential ministers.

Mr McFadden said: “To deliver our plan for change, we are taking more decision-making out of Whitehall and moving it closer to communities all across the UK.

“By relocating thousands of civil service roles we will not only save taxpayers money, we will make this government one that better reflects the country it serves. We will also be making sure that government jobs support economic growth throughout the country.

“As we radically reform the state, we are going to make it much easier for talented people everywhere to join the civil service and help us rebuild Britain.”

The government says it wants senior civil servants out of the capital too – with the aim being that half of UK-based senior officials work in regional offices by the end of the decade.

The government claims the relocations and growth of regional hubs could add as much as £729m to local economies by 2030.

Union welcome – cautiously

Unions appear to cautiously welcome the changes being proposed.

All of Prospect, the PCS and the FDA say it is positive to see better opportunities outside of the capital.

However, they have asked for clarity around whether roles may be lost and what will be offered to people transferring.

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Fran Heathcote, the general secretary of the PCS union, said: “If these government proposals are to be successful however, it’s important they do the right thing by workers currently based in London.

“That must include guarantees of no compulsory redundancies, no compulsory relocations and access to more flexible working arrangements to enable them to continue their careers should they wish to do so.”

Politics

US lawmakers call for change in corporate digital asset taxes

Published

3 hours ago

May 13, 2025

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US lawmakers call for change in corporate digital asset taxes

Two US senators are calling on Treasury Secretary Scott Bessent to “exercise [the department’s] authority” and change a provision affecting taxes on corporate holdings of digital assets.

In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested Bessent had the authority to change the definition of “adjusted financial statement income” under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.

“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” said Lummis in a May 13 X post.

Cryptocurrencies, Law, Taxes, Senate — *May 12 letter to Treasury Secretary Scott Bessent. Source:* *Cynthia Lummis*

According to the two senators, the proposed modification would provide “relief to corporations that invest in digital assets.” Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million to support his 2024 Senate race.

The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”

Senate awaiting second vote on stablecoin bill

The call from the two senators came as lawmakers in the Senate are expected to consider another vote on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act — legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump’s ties to the crypto industry.

Lummis, one of the bill’s co-sponsors, suggested that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days.

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Politics

What are the next steps for the US stablecoin bill?

Published

5 hours ago

May 13, 2025

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What are the next steps for the US stablecoin bill?

Proponents of a bill to regulate stablecoins in the US Congress will likely take up another vote on the legislation in a matter of days without responding to concerns about President Donald Trump’s financial ties to the cryptocurrency industry.

The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, failed to get enough votes to pass in the US Senate on May 8 amid calls from some Democratic lawmakers to halt any legislation related to digital assets until Republicans could address Trump’s potential conflicts of interest.

Immediately following the vote, some lawmakers from both parties suggested they could reconsider the bill as early as this week, but without agreeing on a bipartisan path forward.

After the GENIUS Act failed to proceed in a 48 to 49 vote in the Senate, Majority Leader John Thune made a motion to reconsider, setting up a possible vote on the matter within days. A source familiar with the matter told Cointelegraph Republicans who backed the bill were unlikely to modify it to block Trump or any member of his administration from investing in digital assets, claiming it was beyond Congress’s authority under the Constitution.

“[…] this delay is not inherently detrimental,“ said Liat Shetret, vice president of global policy and regulation at blockchain analytics firm Elliptic. “We can expect the bill to return to the floor, with this pause giving both parties time to clarify provisions and address lawmakers’ concerns.”

The Cedar Innovation Foundation, an organization tied to the political action committee (PAC) Fairshake, issued a warning to Senate leadership to “avoid political games” and pass a stablecoin bill “in the coming days.” Fairshake spent more than $131 million to support candidates in the 2024 US elections, some of whom are currently serving in the House and Senate. There are still more than 500 days until the 2026 midterms, when many members of Congress are up for reelection.

On May 12, the Senate resumed consideration of the motion to proceed to consideration of the GENIUS Act, suggesting another vote soon.

Changes to stablecoin or market structure bills?

Should Republicans in the Senate reintroduce the bill without any changes, it’s unclear whether they would have enough support to clear a 60-vote majority to avoid a Democratic filibuster — a process to delay or sometimes block a vote on a bill.

The Trump family’s ties to the crypto platform World Liberty Financial and its stablecoin, USD1, have raised potential corruption concerns, as has offering the top holders of his TRUMP memecoin the chance to pay for access to the president through an exclusive dinner and reception.

“[…] the Republicans’ bill did nothing to address Trump’s conflict, and instead voted to hand Trump the authority to write the rules over his and his competitors’ stablecoins,” said Democratic Representative Maxine Waters in a May 6 statement. She blocked a hearing to discuss a possible digital asset market structure bill, citing concerns about Trump’s “ownership of crypto.”

Democratic lawmakers have already introduced possible solutions to what they called the “biggest corruption scandal in the history of the White House” — with legislation in the House and Senate to bar members of Congress, the president, the vice president, and their families from profiting off memecoins. Senators Elizabeth Warren and Chris Van Hollen also reportedly called on the president to fully divest from USD1 before making any possible deals with foreign governments.

The nonpartisan organization State Democracy Defenders Action reported in April that Trump’s crypto holdings were worth roughly $2.9 billion, which accounted for 40% of his wealth. This report came before the launch of World Liberty Financial’s stablecoin, which an Abu Dhabi-based investment firm said it would use to settle a $2 billion investment in Binance. Trump’s sons, Eric, Donald Trump Jr., and Barron, were all listed as “Web3 ambassadors” for the platform.

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