The government has set a plan to abolish the use of hotels to keep asylum seekers by 2029, one step Rachel Reeves says that £ 1bn will be saved in a year.

Unveiling the review of his spending on Wednesday, the Chancellor promised £ 200m to “cut the shelter backlog, listen to more appeal cases, and return people who have no right to live here”.

Ministers say that hotels will be phased out by cutting small boat crossings and constructing new government -owned houses for shelter seekers.

Comes after announcement National Audit Office (NAO) estimates – Triple the budget budget by the home office.

Chris Filp, the home secretary of the conservative shadow, claimed that the plans are “built on an assumption that hotels magically evacuate themselves”.

He said, “They still have no plans where these people will go.”

On Tuesday, Home Office Minister Dame Angela Eagle told a committee of MPs The government wanted to buy tower blocks and alumni houses for home migrants as an alternative to Refugee Hotels.

Dame Angela Eagle said that the government was looking for new methods for shelter seekers ahead of the break clause in the major housing contracts coming next year.

Labor in his manifesto promised “to end the refuge hotels, save the billions of pounds of the taxpayer”, but did not give a date when it would be achieved.

On Tuesday, Reaves told the MPs that the government now expects to hit its target “in this Parliament”.

“Funding that I have provided today … asylum will cut backlog, listen to more appeal cases and return to those who have no right to come here,” he said.

An additional £ 150m will be spent in 2026-27 to speed up the planned reforms of the refuge and in 2027-28, for the purpose of modernizing public services, to come from £ 3.25BN transformation funds.

The government estimates that reforms will reduce the cost of at least 1BN per year by 2028–29 compared to 2024-25 prices.

According to the home office, hotels are “casual houses” and only to be used for asylum seekers when other houses cannot be sour.

But their use has increased since 2020 – fuel by refuge backlog, housing lack and rising fare prices, According to the Migration Observatory of Oxford University.

The government spent £ 1.3BN this year for those who seek refuge in hotels, According to Nao – 76% of all housing costs.

Most recent Show home office figures There are about 32,000 asylum in hotels in Britain. This is 6% less than 34,530 at the same point a year ago.

Responding to the announcement, Chairman of the Committee of Home Affairs, Dame Karen Bradley said that the cost of the refuge hotels has increased to the “shocking border”.

Dame Karen, Conservative MP from Staffordshire Mullands, said: “If the hotels disappear, there should be still a short -term housing stock to deal with the unexpected levels of irregular migration.

“Goals on their own are not enough, they need to be distributed – and for this we need working solutions”.

Dame Karen warned that without savings, widespread targets would be affected to improve policing, cut immigration and strengthen terrorism.

In reviewing his expenses, the Chancellor announced a TP £ 280 meters per year for the Border Security Command, which leads to the UK strategy for smuggling and cluttering people at small boat crossings. It follows the initial £ 150m for the installation of the unit last year.