The UK’s spending watchdog has condemned the Home Office for making a series of “poor decisions” and “cutting corners” in its rush to secure a derelict prison in East Sussex for asylum seeker accommodation. The National Audit Office (NAO) found that the government overpaid by more than double the amount the seller had paid just a year earlier, spending £15.4 million on the Northeye site, which is contaminated with asbestos.
The report, published today, reveals that the decision to acquire the Northeye site was made under significant pressure following Prime Minister Rishi Sunak’s pledge in December 2022 to end the use of hotels to house asylum seekers. This commitment, made in Parliament, led to an urgent scramble within the Home Office to find alternative accommodation for asylum seekers amid a growing backlog of cases.
Despite the environmental concerns and the site’s “high risk” status, a small group of ministers and officials, including Immigration Minister Robert Jenrick and Cabinet Minister Oliver Dowden, proceeded with the purchase. The decision was made in January 2023 without proper technical due diligence or a thorough approvals process, according to the NAO.
In February 2023, an environmental review confirmed the presence of asbestos and noted that the site’s contaminated ground posed significant health and safety risks. The report also estimated that it would cost between £1.1 million and £3.6 million to remediate the site. However, these costs were not disclosed to ministers before the decision to proceed with the purchase was made.
The Home Office eventually completed the deal in September 2023, paying £15.4 million for the site. This was more than double the £6.3 million paid by the vendor, Brockwell Group Bexhill LLP, just one year earlier. The NAO concluded that the rush to secure accommodation for asylum seekers led to the Home Office overpaying for an unsuitable site.
Initially intended to house up to 1,400 asylum seekers who had arrived in the UK via small boats, the Northeye site was later deemed unsuitable for its intended purpose. By May 2023, the government had decided to convert the site into a detention facility, but to date, no work has been done to make the site habitable.
In response to the report, the Home Office stated that the decisions outlined were made under the previous government and that it remained committed to ending the use of hotels for housing asylum seekers. The department emphasized that it is working to restore order to the asylum system, which is currently under significant strain.
The Public Accounts Committee has announced that it will launch a further inquiry into the Northeye acquisition. Conservative MP Sir Geoffrey Clifton-Brown, who chairs the committee, criticized the Home Office for deviating from standard procedures and ignoring warnings about the site’s condition. He expressed concern that the government had “overpaid for an asylum accommodation site that is not fit for purpose.”
The new Labour government, which took office after the purchase, has said no decision has been made regarding the future use of the Northeye site.
As questions remain about the value of the purchase, the NAO’s report raises serious concerns about the government’s handling of asylum seeker accommodation and its rushed decision-making process. It remains to be seen whether the Northeye acquisition will ultimately provide the benefits the Home Office expects.
The Conservative Party has been contacted for comment.