Government looking at contingency options for where to house asylum seekers after Epping court ruling – UK politics live

Government looking at contingency options for housing asylum seekers after Epping hotel court ruling

Security minister Dan Jarvis has said the government is looking at contingency options for where to house asylum seekers after a court ruled on Tuesday that they cannot live in a hotel in Epping, Essex.

According to the PA news agncy, he told Times Radio on Wednesday:

We’re looking at a range of different contingency options following from a legal ruling that took place yesterday, and we’ll look closely at what we’re able to do.

Asked whether other hotels housing asylum seekers have the proper planning permission, Jarvis said:

Well, we’ll see over the next few days and weeks. Other local authorities will be considering whether they wish to act in the same way that Epping [Forest] district council have.

I think the important point to make is that nobody really thinks that hotels are a sustainable location to accommodate asylum seekers.

That’s precisely why the government has made a commitment that, by the end of this parliament, we would have phased out the use of them.

Keir Starmer’s asylum plans have been plunged into turmoil after a high court ruling blocked people seeking refuge from being housed in the Essex hotel. Epping Forest district council was granted an interim injunction on Tuesday to stop asylum seekers from being placed at the Bell hotel, after continuing protests nearby.

Police officers guard the entrance of the Bell hotel in Epping during a demonstration earlier this month. Photograph: Jaimi Joy/Reuters

More on this story in a moment, but first here are some other developments:

The government has agreed a new deal with Iraq to return illegal migrants as part of wider moves to limit small boat crossings. The deal, signed by Home Office minister Dan Jarvis, will set up a formal process to return Iraqis who have arrived in the UK with no right to stay in the country.
The head of the British armed forces will tell his American counterparts the UK is prepared to send troops to defend Ukraine’s skies and seas but not to the frontline with Russia, as planning intensifies for a postwar settlement. Tony Radakin, the chief of the defence staff, will on Wednesday attend meetings at the Pentagon designed to finalise what 30 different countries are willing to commit to Ukraine’s national security.
UK inflation rose again last month to a higher-than-expected 3.8% amid higher food prices and travel costs, adding to fears that the Bank of England will delay further interest rate cuts. Figures showed the annual rate as measured by the consumer prices index climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.
The UK Space Agency (UKSA) is set to be absorbed by Whitehall as the government seeks to cut the cost of bureaucracy. The agency will merge with Peter Kyle’s Department for Science, Innovation and Technology (DSIT) in April 2026, in a move the government said would cut “duplication” and ensure “clear ministerial oversight”.

Updated at 09.51 BST

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Rail fares in England on path to rise by 5.8% next year on back of inflation data

Joanna Partridge

Train fares in England are now expected to rise by a higher-than-expected 5.8% next year, causing concern among passenger groups.

Rail ticket increases are usually calculated by adding one percentage point to July’s inflation reading on the retail prices index (RPI), which came in 0.2 points above forecasts on Wednesday at 4.8%.

The government has not yet confirmed how it will calculate rail fare increases for 2026 regulated fares, which account for about half of rail journeys.

They would rise by 5.8% if ministers follow the pattern of last year, when they rose by 4.6% in March – one percentage point above the RPI reading from July 2024.

This would be higher than the 5.6% increase that had been predicted, after both the consumer and retail prices index measures of inflation rose more than expected in July, fuelled by higher food prices and travel costs, particularly air fares.

Before the publication of July’s inflation figures, passenger groups had warned that such fare increases risked pricing out some passengers, at a time of a squeeze on consumers’ wallets, including rising food prices.

Almost half of rail fares in England are set directly by Westminster. The devolved Scottish and Welsh governments usually cap fares at a similar level. Regulated fares include season tickets on most commuter journeys, off-peak returns on long-distance routes and flexible tickets for urban rail.

A 5.8% increase in rail fares would result in the cost of an annual season ticket for travel between Gloucester and Birmingham rising by £312 from £5,384 to £5,696, while an annual season ticket between Woking and London would climb by £247 from £4,260 to £4,507.

The Department for Transport (DfT) said there would be an update on changes to regulated fares later this year, but no decisions had yet been made on next year’s rates.

Reeves considering tax on high-value homes to help plug hole in finances

Aletha Adu

Rachel Reeves is considering plans for a tax on expensive homes in an effort to raise billions of pounds and close a large hole in the public finances.

The UK chancellor has ruled out increases to income tax, VAT and national insurance, but Treasury officials have been tasked with exploring other options to boost revenue.

One proposal being considered would be to remove the longstanding capital gains tax exemption on primary residences above £1.5m, according to the Times. Homeowners selling properties above that level would be subject to a capital gains tax at 18% for basic-rate taxpayers and 24% for higher taxpayers.

The proposals are set out to raise between £30bn and £40bn to stabilise the public finances while allowing Reeves to stick to her election pledge not to raise the three biggest taxes on income and consumption.

The chancellor has ruled out increases to income tax, VAT and national insurance. Photograph: Oliver McVeigh/Reuters

When asked about the report, a Treasury source said they would not comment on “speculation”.

Reports have also suggested officials are considering wider changes to the way property wealth is taxed. Reports suggested an annual levy on higher-value properties had been considered.

The suggestion from the thinktank Onward had urged the Treasury to impose an annual charge of 0.54% on the portion of a home’s value above £500,000, rising to 0.81% on the portion above £1m, though officials stressed no decisions had been made.

Meanwhile, the Guardian reported that ministers have been considering replacing stamp duty with a new national property tax, payable by owner-occupiers when homes are sold. It could be accompanied by a longer-term plan to replace council tax with a proportional levy linked directly to property values.

Responding to July’s inflation figure of 3.8%, Liberal Democrat Treasury spokesperson Daisy Cooper said on Wednesday:

Rising inflation is grim news for families, pensioners and businesses still struggling with the cost-of-living crisis.

After the Conservative government oversaw the biggest fall in living standards on record, people desperately need things to change. But, so far, Labour has failed to offer a vision for the economy or a strategy to bring down the cost of living.

The Chancellor needs to take far bolder action, starting with the Liberal Democrat plan to halve energy bills by 2035.

Security minister Dan Jarvis said talks in recent days have “brought the prospect of peace much closer” in Ukraine, but insisted that Russia should not have a veto on Ukraine’s Nato membership, reports the PA news agency.

Speaking on Times Radio, he said:

We’ve always strongly supported Ukraine’s integration, both in terms of their potential desire to be members of the European Union and membership of Nato.

We don’t think that any limitation should be placed on Ukraine’s armed forces or on its cooperation with third countries, and Russia certainly shouldn’t be able to have a veto against Ukraine’s pathway to the European Union or Nato.

The minister added:

I think it is important to make the point that very significant progress has been made. I think the Alaska summit and the talks in Washington over the previous days have brought the prospect of peace much closer than they had been previously.

‘More to do to ease the cost of living’, says Reeves after UK inflation rise

Chancellor Rachel Reeves said there was “more to do to ease the cost of living” after the latest official figures showing UK inflation rose by more than expected last month.

According to the PA news agency, Reeves said:

We have taken the decisions needed to stabilise the public finances, and we’re a long way from the double-digit inflation we saw under the previous government, but there’s more to do to ease the cost of living.

That’s why we’ve raised the minimum wage, extended the £3 bus fare cap, expanded free school meals to over half a million more children and are rolling out free breakfast clubs for every child in the country.

Through our plan for change we’re going further and faster to put more money in people’s pockets.

UK inflation rises by more than expected to 3.8% amid higher food prices

Phillip Inman

UK inflation rose again last month to a higher-than-expected 3.8% amid higher food prices and travel costs, adding to fears that the Bank of England will delay further interest rate cuts.

Figures showed the annual rate as measured by the consumer prices index climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.

That overshot financial market forecasts of a 3.7% figure for July and makes another reduction in the cost of borrowing this year unlikely, with financial markets not fully pricing in the chance of a fresh quarter-point cut until next spring.

The data also suggests rail fares are likely to rise by 5.8% next year. Increases in regulated train ticket prices are usually calculated by adding one percentage point to July’s inflation reading as measured by the retail prices index, which was 4.8%.

The Office for National Statistics said a jump in air fares was behind much of the increase in average prices. Tickets on flights out of the UK rose 30% month on month, although much of the increase was because of the timing of the summer holiday break.

Petrol prices added 0.1 percentage points to inflation after a comparison with last year, when prices at the pumps were falling.

Food and non-alcoholic beverages were up 4.9% year on year in July, an increase from 4.5% in the 12 months to June. Beef, orange juice, coffee and chocolate were among the worst-hit products.

Droughts in Spain, Italy and Portugal, where the UK sources much of its fresh fruit and vegetables, have pushed up prices this summer at a time when prices would usually fall.

Kevin Rawlinson

In case you missed the Guardian’s news piece about the Bell hotel high court ruling:

Keir Starmer’s asylum plans have been plunged into turmoil after a high court ruling blocked people seeking refuge from being housed in an Essex hotel.

Epping Forest district council was granted an interim injunction on Tuesday to stop asylum seekers from being placed at the Bell hotel, following continuing protests nearby.

Thousands of people, including some rightwing agitators, have gathered near the hotel in recent weeks after an asylum seeker living there was charged with sexually assaulting a 14-year-old girl in the town.

Ministers are bracing for dozens of legal challenges from other council leaders after the ruling. Home Office lawyers warned the court that the decision could “substantially impact” the government’s ability to house asylum seekers in hotels across the UK.

There were about 200 hotels housing about 30,000 asylum seekers at the end of March.

Insiders at the Home Office admitted the department had been left “reeling” by the ruling. The department is obliged to house asylum seekers until their cases are assessed.

Reacting to the judgment, the border security minister, Angela Eagle, said:

We will carefully consider this judgment. As this matter remains subject to ongoing legal proceedings it would be inappropriate to comment further at this stage.

Mr Justice Eyre granted the injunction after hearing the local council’s complaints that planning law had been breached in changing the site’s use.

Epping district council also cited disruption caused by the protests and concerns for the safety of the asylum seekers themselves.

Sitting at the Royal Courts of Justice on Tuesday, the judge agreed with the council that an urgent order was required to stop the hotel housing asylum seekers. He said the hotel’s owner, Somani Hotels, had until 12 September to comply.

‘The very worst politicians’ try to drive people apart, says security minister after Farage opinion piece

Security minister Dan Jarvis said he believes “the very worst politicians” try to drive people apart, when asked on Sky News about Nigel Farage’s opinion piece in the Telegraph on Wednesday about hotels housing asylum seekers.

Jarvis said:

I haven’t read Mr Farage’s op-ed, but I’ve always thought that the best politicians try and bring people together, and the very worst politicians try and drive them apart.

Security minister Dan Jarvis said he believes ‘the very worst politicians’ try to drive people apart, when asked on Sky News about Nigel Farage’s opinion piece in the Telegraph on Wednesday. Photograph: Christopher Thomond/The Guardian

When asked whether the government plans to appeal against the high court’s decision on the hotel housing asylum seekers in Epping, Jarvis said:

Well, we’ll see where we get to with that specific decision. We’re looking very closely at it.

The bigger issue is how we can tackle the asylum backlog. We inherited a very significant backlog from the previous government who effectively stopped processing asylum claims. That’s why we rediverted the resources that had been put in place for Rwanda to ensure that we can process asylum claims much more quickly than was previously the case.

And I think the rate of processing is up by 116%, we’ve returned 35,000 people over the last year who don’t have a right to be here.

Updated at 09.33 BST

Security minister Dan Jarvis has emphasised that the Bell hotel in Epping, which a court ruled on Tuesday will have to stop housing asylum seekers, is a “very specific case” with “a longstanding history of concern”.

Speaking on Times Radio, he said:

This was a very specific case concerning a hotel which, since it opened to accommodate asylum seekers five years ago now, has been the subject to a lot of complaints and protests.

Indeed, there’s been considerable amount of legal debate about its location and use.

If you go back to November 2022 when it came into use for the second time as an asylum hotel – I think Robert Jenrick was the minister responsible for that, by the way – the local council at the time said it was planning a legal challenge over whether the local planning regulations had been followed correctly.

There is quite a longstanding history of concern about this particular hotel, and there’s been consideration of previous legal challenges going all the way back.

He added:

There is a short-term challenge to ensure that those asylum seekers who are here are appropriately accommodated, but of course the bigger-picture challenge is stopping people coming here illegally in the first place.