The Home Office has “squandered” billions of pounds of taxpayers’ money on asylum accommodation, according to a report by a committee of MPs.

The Home Affairs Committee said “flawed contracts” and “incompetent delivery” left the department unable to cope with a surge in demand and it relied on hotels as “go-to solutions” instead of temporary stop-gaps.

The MPs said expected costs had tripled to more than £15bn and not enough had been done to recoup excess profits.

A Home Office spokesperson said the government was “furious about the number of illegal migrants in this country and in hotels”, and reiterated its pledge to end the use of asylum hotels by 2029.

Around 32,000 asylum seekers are currently living in 210 hotels whilst their applications are processed, costing the government around £5.5m a day.

The report said the current system for housing people seeking asylum – with its reliance on hotels – was expensive, unpopular with local communities and unsuitable for the asylum seekers themselves.

The report said the contracts drawn up for accommodation providers under the Conservatives had been flawed and that “inadequate oversight” had meant failings went “unnoticed and unaddressed”.

Expected costs for hotel contracts from 2019-2029 have risen from £4.5bn to £15.3bn, while two accommodation providers still owe millions in excess profits that the Home Office has not recovered, the report found.

Chair of the committee Dame Karen Bradley told BBC Radio 4’s Today programme: “We just ended up with more people than the contracts ever thought there could be and that’s meant that the costs have absolutely rocketed.”

“The government has only just started looking at claiming back those profits, auditing the accounts to see what is due back to the taxpayer,” Dame Karen said.

The said “failures of leadership at a senior level” were among reasons the Home Office was “incapable of getting a grip on the situation”.

Dame Karen said the department had “neglected the day-to-day management of these contracts” and has focused on “short term, reactive responses”.

“The skills needed to manage these contracts simply were not present in the Home Office when they were drawn up,” she added.

External factors, including the pandemic and the “dramatic” increase in small boat arrivals, have meant the Home Office has had to accommodate “a growing number of people for longer periods of time” the report said.

Choices made by the previous Conservative government, including to delay asylum decisions as it pursued the scheme to deport migrants to Rwanda, factored into this, MPs added.

While the report acknowledged the “challenging environment” in which the Home Office was operating, it said “its chaotic response has demonstrated that it has not been up to the challenge”.

The MPs said they had heard too many cases of inadequate asylum accommodation and unaddressed safeguarding concerns for vulnerable people.

Housing Secretary Steve Reed accused the previous government of “pouring taxpayers’ money down the drain”.

He added that Labour ministers were continuing to look at housing asylum seekers on disused military bases, as they are the “least expensive option available”, alongside longer-term rental accommodation options.

Two former military sites – MDP Wethersfield, a former RAF base in Essex, and Napier Barracks, a former military base in Kent – are already being used to house asylum seekers after being opened under the Conservatives.

Dame Karen welcomed the government’s pledge to shift away from asylum hotels and invest in larger sites like military bases.

But she said past failings, like moving people into accommodation too quickly, must not be repeated.

“On large sites, once the lessons have been learned, facilities are much better, people are in much more suitable accommodation and it can be better for everybody,” she said.

In response to the report, a Home Office spokesperson said: “We have already taken action – closing hotels, slashing asylum costs by nearly £1 billion and exploring the use of military bases and disused properties.”

Several protests and counter-protests over asylum hotels have taken place across the UK this year, notably in Epping over the summer after an asylum seeker being housed at The Bell Hotel was charged with two sexual assaults.

Last Updated:October 27, 2025, 13:23 IST

‘Demand conditions across rural and urban India strengthened with…GST reforms and the festive season,’ the finance ministry says in latest Monthly Economic Review.

Despite global economic uncertainties and trade disruptions, India’s economy has continued to gather strength, supported by robust domestic demand, strong manufacturing and services activity, and contained inflation, according to the finance ministry’s Monthly Economic Review for September 2025 released on October 27.

“Amidst…uncertain global outlook, India’s economy continues to gain momentum. Demand conditions across rural and urban India strengthened with the implementation of the GST reforms and the festive season, coinciding with industry reports signalling robust growth in sales, particularly in sectors such as automobiles. On the supply side, the manufacturing and services sectors expanded healthily. Taking into account the higher-than-anticipated growth in Q1 FY26 and steady upward trends visible in Q2 FY26, India’s growth forecasts for FY26 have been upgraded,” the finance ministry said in the report.

The report noted that economic activity worldwide has remained steady over the past few months, despite adverse trade policy disruptions. As a result, global economic growth this year is now expected to fare better than initially feared. This is reflected in the International Monetary Fund’s (IMF) upward revision of the global growth forecast for 2025 to 3.2 per cent in October 2025, compared with 3 per cent in July 2025 and 2.8 per cent in April 2025. Several transitory factors, such as a lower effective tariff rate in the US and frontloading of trade, have contributed to propping up growth. However, this resilience masks underlying structural weaknesses which are coming to the fore, leaving projections for global growth in 2026 broadly unchanged since July 2025.

The IMF now expects India’s real GDP to grow 6.6% in FY26, while the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) projects an even higher 6.8% growth, reflecting upgrades of 20 and 30 basis points, respectively.

Inflation Under Control, Price Stability Expected to Continue

The report highlighted that inflation remains well within control, aided by continued deflation in food categories. Retail headline inflation eased to 1.54% in September 2025, bringing the Q2 FY26 average to 1.7%.

Core inflation (excluding food and fuel) stood at 4.6% in September, with prices of non-food items staying stable. The ministry said, barring any adverse weather events or supply chain shocks, price stability is likely to prevail.

The RBI expects inflation to average 1.8% in Q3 FY26, with a slight uptick in Q4 FY26 and Q1 FY27 as base effects fade.

RBI Measures Support Liquidity and Credit Flow

The finance ministry credited the RBI’s liquidity management for ensuring adequate credit availability to support growth. The transmission of monetary policy into money and credit markets remains effective, reflecting the central bank’s calibrated approach.

It added that the RBI’s recent regulatory and development policies demonstrate a “balanced response” to evolving macroeconomic conditions — combining prudence with reforms aimed at strengthening banks, boosting credit flow, simplifying forex management, and internationalising the Indian Rupee.

External Trade Remains Resilient

India’s external sector has also shown resilience despite a volatile global trade environment. Total exports of goods and services grew 4.4% year-on-year in the first half of FY26 to reach USD 413.3 billion.

While merchandise exports rose 3%, services exports expanded 6.1% during the same period. Core merchandise exports, excluding petroleum and gems & jewellery, grew a strong 7.5%, underscoring the competitiveness of India’s manufacturing base.

Labour Market, Reforms, and Innovation Drive Growth

The government’s emphasis on skill development and job creation has helped stabilise the labour market in H1 FY26, with rising labour force participation and employment growth in both industry and services.

The introduction of GST 2.0 is expected to further stimulate consumption and investment, creating a multiplier effect on employment and demand.

The report also highlighted the government’s focus on research and innovation to boost global competitiveness. The Promotion of Research & Innovation in Pharma-MedTech Sector (PRIP) scheme, launched by the Department of Pharmaceuticals, will provide around ₹11,000 crore in support for R&D projects. The initiative aims to transform India’s Pharma-MedTech sector into a globally competitive, innovation-driven ecosystem by funding early-stage research and promoting flexible collaborations focused on public health priorities.

Outlook: Growth Momentum to Sustain

The finance ministry said the combination of macroeconomic stability, regulatory reforms, and ongoing structural initiatives is expected to have a positive multiplier effect on economic activity. These efforts, it said, will support domestic demand, enhance resilience, and help sustain India’s growth momentum despite a challenging global environment.

“Looking ahead, the lower GST rate is expected to support a positive demand outlook by reducing the tax burden on consumers and businesses, stimulating consumption and investment across sectors and boosting employment generation in the economy. Moreover, a strong performance in the industries and services sector, along with a stable labour market, will further enhance domestic demand. Nevertheless, global uncertainties warrant caution and will continue to affect external demand, presenting downside risks to the growth outlook,” the ministry said.

The implementation of various growth-enhancing structural reforms and government initiatives, including GST 2.0, is expected to mitigate some of the negative impacts of these external challenges, it added.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

Read More

Last Updated:October 27, 2025, 10:42 IST

Jayesh Logistics IPO: Unlisted shares of Jayesh Logistics Ltd are currently trading at Rs 127 apiece in the grey market, against the upper IPO price of Rs 122, a GMP of 4.10%.

Jayesh Logistics IPO Day 1: The initial public offering (IPO) of Jayesh Logistics Ltd opened on Monday, October 27. The Rs 28.63-crore SME IPO will remain available for public subscription for three days till Wednesday, October 29. Till 10:29 am on the first day of bidding on Monday, the IPO received a 0.17x subscription, garnering bids for 2,86,000 shares as against the 16,71,000 shares on offer.

Its retail category has received a 0.20x subscription, while the NII (non-institutional investor) quota has received a 0.38x subscription.

Jayesh Logistics IPO Price & Lot Size

The price band of the IPO has been fixed in the range of Rs 116 to Rs 122 apiece. The lot size for the issue is 1,000. It means a retail investor will have to apply for a minimum of 1,000 shares (a lot) and in multiple thereof. The minimum investment required is Rs 2,44,000, on the upper price of the IPO.

Jayesh Logistics IPO GMP Today

According to market observers, unlisted shares of Jayesh Logistics Ltd are currently trading at Rs 127 apiece in the grey market, against the upper IPO price of Rs 122. It means a grey market premium (GMP) of 4.10%, indicating mild listing gains for investors as of now.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

The IPO will be listed on both the NSE Emerge on November 3.

Jayesh Logistics IPO: More Details

The IPO, which is entirely a fresh issue of 23.47 lakh shares, will close for subscription on October 29, 2025, with allotment expected on October 30. The company’s shares are proposed to be listed on the NSE SME platform on November 3, 2025.

The price band for the issue has been fixed at Rs 116-Rs 122 per share, with a lot size of 1,000 shares. The minimum investment for retail investors is Rs 2,44,000 (for two lots or 2,000 shares at the upper band), while HNIs are required to apply for a minimum of three lots (3,000 shares), amounting to Rs 3,66,000.

Indcap Advisors Pvt Ltd is the book-running lead manager, Kfin Technologies Ltd. serves as the registrar, and Giriraj Stock Broking Pvt Ltd is the market maker for the issue.

Financially, the company reported a revenue jump of 27%, while profit after tax (PAT) surged 128% between FY24 and FY25, reflecting improved operational performance.

Founded in May 2011, Jayesh Logistics Limited is a full-service logistics solutions provider with a strong presence in cross-border cargo movements across the Indo-Nepal Corridor and the Nepal hinterland.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

Read More