A cash-strapped London council has said it is considering legal action against the Home Office over the skyrocketing cost of supporting asylum seekers without additional Government funding.
Hillingdon, which has had to make £34 million of cuts this year, warned its finances are being stretched to “unsustainable levels” by the number of migrants being placed in the borough.
An average of 3,000 asylum seekers are housed in the borough at any one time - more than double the national threshold. The vast majority have been put up in hotels near Heathrow airport by the Home Office.
But as the Government seeks to reduce the asylum backlog, the local authority is seeing hundreds evicted on to the streets every month.
The council then has to take responsibility for offering assistance or help with finding suitable, alternative accommodation.
Council leader Ian Edwards told the Standard that officers have been asked to look at potential legal avenues if funding is not increased.
He said: “Our finances are being stretched to unsustainable levels. We have twice the number of asylum seekers in our borough as elsewhere in country. Much of this because of our proximity to Heathrow airport and we are a port authority.
“Many of these people are vulnerable and need help, and we are not saying we don’t want to help. But it is an unfair financial burden on our residents who are having to subsidise these additional costs.
“We are just asking for a fair funding settlement. This is not a dig at the Labour Government. We are a Conservative administration, but we had problems with this under the last government and we had discussions with them then. But it has never been fixed.”
The asylum funding shortfall across all Hillingdon council services is estimated to be £5million in 2024/25 and £11.3 million in the five years ending 31 March 2025.
It has seen a “significant increase” in rough sleeping referrals to Street Link, with communities living in tents at several locations in the borough, including under bridges.
More and more families are also arriving from the Chagos Islands via Heathrow seeking housing support, the council said.
Up to £800,000 nationally was made available from the Government last year to support the homeless Chagossians, but this only covers the costs incurred for up to 10 days after they arrive in Britain.
A Hillingdon spokesman said they are often supporting families for up to six months, meaning the council can claim back just 7.5% of the total bill.
In April and May alone there were 130 new arrivals and the town hall estimates supporting homeless Chagossians will cost it £1.2million by the end of the year.
Mr Edwards added: “The law doesn’t allow us to turn our back, and nor do we necessarily want to.
“We are looking at legal options to see whether we can take the Home Office to court for not funding us. That is not something we want to get into, but we are running out of options if we don’t get the funding we need.”
Mr Edwards said he is lobbying the Government ahead of June’s Spending Review for greater support, including allowing the borough to keep more of the business rates from Heathrow.
The airport generates approximately £170 million in business rates every year. However, the council is only permitted to retain 17%.
The Home Office said it is “working closely” with local authorities to reduce the reliance on hotels for migrants and developing a more sustainable system which reduces competition for affordable housing.
A Home Office spokesman said: “This government inherited a broken asylum system, with tens of thousands stuck in a backlog and claims not being processed, wasting millions in taxpayer money.
“We are immediately speeding up decisions and increasing returns so we can end the use of hotels, and save the taxpayer £4 billion by 2026.
“We remain committed to working closely with local authorities to work towards a fair and equitable spread of accommodation and provide the financial support required.”
