A financially strained London borough is considering legal action against the Home Office after being left to cover millions in costs associated with housing asylum seekers, without sufficient government support.
Hillingdon Council, which has already slashed £34 million from its budget this year, is facing an estimated £5 million shortfall for 2024/25 due to a surge in demand linked to immigration. Officials warn the current pressure is driving local services to unsustainable limits.
The borough, located close to Heathrow Airport, is accommodating an average of 3,000 asylum seekers at any given time—more than double the government’s threshold. Many have been placed in nearby hotels by the Home Office as part of its efforts to address the national asylum backlog.
With increasing numbers being evicted from temporary accommodation, rough sleeping in the borough has surged. Community tents are now visible under bridges and across public spaces, while local charities report a sharp rise in Street Link referrals.
Hillingdon Council leaders say they have exhausted conventional options and are now exploring legal avenues to hold the Home Office accountable for what they describe as an unfair financial burden on residents.
The issue is further complicated by an increase in homeless arrivals from the Chagos Islands. These families, arriving through Heathrow, are seeking housing support from the council.
Although the Government provided £800,000 nationally last year to assist newly arrived Chagossians, the funding only covers a ten-day support window. Hillingdon Council, however, is often left to provide care for up to six months, recovering just 7.5% of its actual expenditure.
In just two months—April and May 2025—130 new arrivals from the Chagos Islands were reported, and the council anticipates that support costs for this group alone will reach £1.2 million by the end of the year.
As part of its funding plea, the council is also urging ministers to allow it to retain a larger share of business rates collected from Heathrow Airport. Although the airport generates approximately £170 million in business rates annually, the council currently retains only 17%.
The Home Office has said it is working with local authorities to reduce the reliance on hotels and is developing a more sustainable asylum system. It aims to save £4 billion by 2026 through faster processing and improved returns.
As the June Spending Review approaches, Hillingdon Council is intensifying its call for fairer funding and structural reform, insisting that the borough cannot continue to absorb the mounting costs without long-term government intervention.
