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    UK government borrowed lower than forecast in July in boost for Rachel Reeves

    The UK government’s borrowing significantly undershot expectations in July, reaching just £1.1 billion, offering a welcome reprieve for Chancellor Rachel Reeves as the autumn budget approaches.This figure, confirmed by the Office for National Statistics, marks the lowest July borrowing total in three years and represents a £2.3 billion reduction compared to the same month last year. The improved performance was largely attributed to a surge in tax receipts, driven by increased self-assessed income tax and national insurance payments.Economists had widely predicted a higher July borrowing figure of £2 billion, making the actual outcome a positive surprise. Despite this monthly improvement, the cumulative borrowing for the first four months of the financial year stands at £60 billion, an increase of £6.7 billion over the corresponding period last year.Rob Doody, ONS deputy director for public sector finances, said: “Borrowing this July was £2.3 billion down on the same month last year and was the lowest July figure for three years.“This reflects strong increases in tax and national insurance receipts.“However, in the first four months of the financial year as a whole, borrowing was over £6 billion higher than in the same period in 2024.”The Office for National Statistics said the figure, which was £2.3 billion less than the same month a year earlier, is the lowest July borrowing figure for three years More

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    Is Labour really failing on immigration and asylum hotels?

    Councils across England are weighing up legal challenges after the High Court’s decision to block a hotel in Epping from accommodating asylum seekers.The ruling blocks asylum seekers from being housed at the Bell Hotel in the Essex town, and current residents must be removed by September 12.On Wednesday, several local authorities, including some run by the Labour Party, said they were considering their options to take similar action.The ruling has resulted in another wave of criticism directed at Sir Keir Starmer and his Labour government over immigration, with opposition parties repeatedly accusing the government of failing to adequately tackle the issue.Yet amid backlash and local council tensions, the figures show that Labour has already made significant steps to move away from the use of hotels.The multi-billion cost of housing asylum seekers in hotels has dropped markedly from its peak in 2023. Last year (2024/5), the cost for hotel bills was at £2.1bn, down by a third from £3.1bn in the previous year. The smaller bill is a result of multiple factors, most notably the reduction in the asylum backlog.The average daily cost for housing each asylum seeker in a hotel has gone down from £176 to £170 per person. This still remains higher than previous years.The government has also made efforts to reduce the proportion of asylum seekers housed in hotels, moving them towards other types of accommodation.Figures from March show 32,345 asylum seekers out of over 100,000 were being accommodated in hotels, with the remainder housed in temporary accommodation including council-owned homes and a former airfield.Just 30 per cent are staying in hotels, which is meant as a contingency – or temporary – measure.Government accounts show that costs are likely to remain similar this year, with £2.2bn requested by the Home Office to asylum housing costs; suggesting that the number of asylum seekers is unlikely to fall significantly. In February, Home Office permanent secretary Sir Matthew Rycroft said the department was aiming to “get to zero” asylum hotels by the end of this parliament in 2029.In 2022, the government began plans to use “large sites” like cruise ships and ex-military bases to accommodate asylum seekers. Among these are the Bibby Stockholm barge, which was shut down last year, and former RAF airfield Wethersfield which now houses 588 people as of early 2025. But a review last year found that these sites cost more than hotels as a way to house asylum seekers. Nonetheless, hotels cost around six times more on average than other types of accommodation, according to analysis by the Migration Observatory; at £170 a day compared to £27 a day.Yet most of the time, the government is forced to place people in hotels due to a lack of capacity, with a shortage of accommodation and a substantial –albeit decreasing – asylum backlog.The asylum backlog stood at 78,745 cases at the end of March – a 13 per cent drop from December, and down 41 per cent from the mid-2023 peak.Yet the sizeable backlog, which is still higher than pre-2022 levels, represents a host of ongoing costs for the government as people wait for a decision on their asylum claims.Most asylum seekers are still waiting over six months for an initial decision on their claim, although waiting times have improved compared to the same time last year. The majority of people in the backlog are Afghan, Pakistani and Iranian nationals, according to the Migration Observatory. The UK’s asylum backlog is the fifth largest in Europe.Where are asylum seekers staying in the UK?Now, over 8 in 10 local authorities host some asylum seekers, Home Office figures show. This is a significant rise over the last decade.Accommodation for asylum seekers varies by region. In the North East of England, just 5 per cent are housed in hotels, while in London hotels make up the majority of accommodation (65 per cent).Epping Forest council is within the East of England region, which has 41 per cent of migrants housed in hotels.However, being in Essex, the council is on the edge of London which has a higher concentration of asylum seekers than the rest of the UK.Around 140 migrants were being housed in The Bell Hotel in Epping, according to BBC reports, all of whom must now leave by September.Though the hotel has provided accommodation for the Home Office for several years, occupancy has fluctuated, with figures in March showing just 28 asylum seekers housed across Epping Forest hotels.Reform leader Nigel Farage has called on other councils to seek “Epping-style injunctions” against the use of hotels to house asylum seekers, adding: “It is high time that the outrageously expensive asylum hotel scheme, which nobody in Britain ever voted for, was brought down by popular demand.”The recent pushback has come amid record levels of small boat crossings to the UK.Labour’s education minister Baroness Jacqui Smith has admitted that the high numbers are “a problem that, up until this point, we haven’t managed to tackle”.People coming on small boats make up an increasing proportion of asylum applications. Last year, a third of the UK’s asylum claims came from small boat migrants.In 2025 so far, over 26,000 migrants have already crossed the English Channel, higher than summer levels in any year to date.In fact, figures at mid-August have nearly exceeded the entirety of 2023 (29,437).Meanwhile arrests of people smugglers who enable the crossings were down last year, according to National Crime Agency data obtained by The Independent. The shadow home secretary called Labour’s failure to “smash the gangs” an “abject failure”.This suggests that small boats migration could be the highest on record over 2025, bringing with it a slew of new asylum claims; since almost all irregular migrants apply for asylum. More

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    How could Labour shake up the property tax system in the Budget?

    Radical new ways to tax property are reportedly being considered by the Treasury ahead of the next autumn budget as chancellor Rachel Reeves looks to bolster public finances.Plans to overhaul stamp duty and council tax, as well as a “mansion tax” to cover the sale of high-value homes, are all on the table, sources have said in recent days.Ms Reeves is understood to have asked officials to calculate how these new “proportional” taxes would work in the UK, all of which would aim to target wealth more directly. The overhaul would see a national property tax replace stamp duty on owner-occupied homes. Council tax could also be replaced with a local property tax, helping to boost ailing local authority finances.Chancellor Rachel Reeves has asked officials to calculate how a new ‘proportional’ property tax would work in the UK More

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    Reeves’ ‘mansion tax’ would stall home sales and fuel exodus of super-rich, experts warn

    Property experts have warned that Rachel Reeves’ plans to levy a so-called “mansion tax” on high-value properties would stall housing sales and add to the exodus of the super-rich from the UK. Mortgage brokers and financial planners have rounded on the chancellor after reports she is considering hitting the owners of expensive properties when they sell to plug a £40bn hole in the public purse. The mooted plans would see higher-rate taxpayers pay 24 per cent of any gain in the value of their home, while basic rate taxpayers would be hit with an 18 per cent levy. Currently, capital gains tax is not paid on the sale of primary residences.Rachel Reeves is believed to be planning a raid on high-value home sales More

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    Asylum hotels latest: Councils vow to take legal action after Epping migrant site shut as Reform calls for protests

    Protesters gather outside the Bell Hotel in Epping after injunction blocks housing of asylum seekersMore councils are now vowing to launch legal challenges over the government’s use of asylum hotels, sparking chaos for Sir Keir Starmer, as Reform UK calls for protests.Councils have announced they are considering action to ban migrants from being housed in their areas after Epping Forest District Council won an interim High Court injunction to stop asylum seekers being housed at The Bell Hotel.The council successfully argued the site had become a “feeding ground for unrest” in recent weeks after a series of violent protests resulted in multiple arrests and saw police officers injured.Home secretary Yvette Cooper made a last-minute attempt on Tuesday to halt their removal, arguing that other councils would make similar applications for migrant accommodation in their areas.Reform leader Nigel Farage hailed the High Court decision in Epping as a “victory” and indicated that the 12 councils where his party is the largest would now consider similar challenges.Writing in the Daily Telegraph, he also said that “the good people of Epping must inspire similar protests around Britain”.Meanwhile, the shadow home secretary argued that residents have “every right to object” to people being housed in their area.Spelthorne vows it ‘will not give up’ in pursuing legal actionSpelthorne Borough Council has vowed it “will not give up” as it pursues “every legal and strategic option available”.In a statement issued today, the council said: “Spelthorne Borough Council remains resolute in its opposition to the Home Office’s recent decision to change the use of the Stanwell Hotel from housing families and single women to accommodating single adult males only.“In response to this change, the Council acted swiftly to obtain legal advice regarding the potential for enforcement action on planning grounds. The Council is now working closely with legal counsel in light of the recent High Court ruling on the Bell Hotel in Epping Forest, which may have significant implications for the situation in Stanwell.“The Council is also continuing to press the Home Office for a formal response to previous correspondence and is urging immediate and meaningful engagement.”Cllr Joanne Sexton, Leader of Spelthorne Borough Council, added: “We will not give up. This decision by the Home Office is deeply concerning and was made without proper consultation or consideration of the local community. Our priority is, and always will be, the wellbeing of our residents and protecting Stanwell. We are pursuing every legal and strategic option available to us, and we call on the Home Office to respond urgently and engage constructively.”Tara Cobham20 August 2025 15:45South Norfolk Council issue enforcement notice on asylum hotel in areaThe Independent’s social affairs correspondent Holly Bancroft reports:South Norfolk Council have issued an enforcement notice on the asylum hotel in their area. The hotel owners were served with the order on 8 August, requiring the owners to put in a planning application for a change of use.In the Epping case, the hotel’s owners Somani Hotels Ltd failed to apply for a change of use, leading to Epping Forest District Council taking action against them for a breach of planning permission.Tara Cobham20 August 2025 15:30Solihull Council also considers implications of Epping judgementSolihull Council is also considering the implications of the Epping judgement.A Solihull Council spokesperson said: “Once the full details are published, we will be able to consider what this might mean for Solihull Council and if there are any implications for the hotel in Solihull.”Tara Cobham20 August 2025 15:15Wirral council to consider options as Home Office intends to use former hotel for single male asylum seekersWirral council have said that they are considering their options after the Home Office informed them that a former hotel in their area will soon be used to house single male asylum seekers. The former hotel is currently being used to house asylum seeking families and no planning consent has been brought to change the use of the hotel, the council said. The Home Office informed the council at the end of June that they plan on relocating the families and using the building for asylum seeking men instead.Reacting to Epping Forest Council’s victory at the High Court, a spokesperson for Wirral council said: “We will be considering the detail of the judgement and how it might impact on planning consent for the proposed use of the former hotel in Hoylake”.Rebecca Whittaker20 August 2025 15:00Farage calls for protests following Epping rulingReform UK leader Nigel Farage has called for protests following the Epping ruling.Mr Farage wrote in the Daily Telegraph: “Now, the good people of Epping must inspire similar protests around Britain.“Wherever people are concerned about the threat posed by young undocumented males living in local hotels and who are free to walk their streets, they should follow the example of the town in Essex.“Let’s hold peaceful protests outside the migrant hotels, and put pressure on local councils to go to court to try and get the illegal immigrants out; we now know that together we can win.”Reform UK leader Nigel Farage has called for protests following the Epping ruling More

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    Voices: ‘Short-term fix to a bigger crisis’: Readers react to Epping asylum hotel ruling

    Independent readers are divided over the High Court ruling that asylum seekers must be moved out of The Bell Hotel in Epping, with many seeing it as a fraught and short-term fix to a wider housing and migration crisis.Many argued the judgement sets a dangerous precedent, effectively rewarding protests and unrest by closing hotels, and leaving asylum seekers displaced without proper alternatives. Others warned that the decision risks emboldening far-right groups, who would see disruptive tactics as a way to influence local planning and policy.But some commenters backed the court’s decision, saying local people had been ignored for too long while their towns and services absorbed sudden changes without consultation. “Ordinary UK citizens are sick of being ignored while resources are stretched thin,” said one reader, echoing widespread frustration that communities feel powerless over decisions made in Westminster.Meanwhile, however, several readers stressed that immigration is essential to the UK’s economy, especially in an ageing society, while others called for safe and legal asylum routes to end the small boats crossings. Critics of Reform and Nigel Farage accused them of exploiting the crisis for political gain, while pointing out that both Tory and Labour governments had failed to address the backlog.Here’s what you had to say:This is no victory for EppingThe government are now actively fast-tracking migrants from hotels to HMOs all across the country. As a landlord with two of these types of property, the temptation of a lease from Serco is getting far too hard not to take.I approximate that landlords will get an extra £2,000–£5,000 per year to lease to the government. Not only that, you don’t have to ever find a tenant or look after the property as Serco completely take over the management and maintenance duties.These properties have a great value to society, as they are frequently used by split families, where fathers can’t afford a full-price rent or mortgage. These places give them time to get back on their feet and live well, whilst paying maintenance. Also, young single people who don’t have a strong family network – it’s their only way to afford any accommodation. These people are being squeezed out as more properties are turned over to the government. 227detiusOrdinary UK citizens are sick of being ignoredPeople in towns like Epping are exhausted. They never asked for their local hotel to be turned into an asylum hostel, never got a say, and yet they’re the ones left living with the consequences – rising tension, fear, and the sense their community is being changed without their consent.Ordinary UK citizens are sick of being ignored while resources are stretched thin and foreign nationals are prioritised over them. This isn’t about hate – it’s about fairness, safety, and respect for the people who actually live here. The High Court ruling is a rare moment where local voices have finally been heard, and many feel it’s long overdue. RFAThey are asylum seekers, not migrantsThey are asylum seekers and cannot be called migrants. I have seen some people in hotels where they seem lost. What they need is a place to sleep and be able to eat their nation’s dishes, and hotels are not aware of what food they eat. On top of that, hotels hire people who speak their language to learn their taste.If they can buy stuff themselves, that will reduce costs for government considerably. Once their case is finalised, they can start work and won’t be a burden to government. TotiCallingThe far-right create the problems they rail againstSo, right-wingers who voted in a right-wing party to stop asylum seekers being housed in run-down empty homes across the country that locals didn’t want to live in, and house them in hotels instead, have won a victory against the policy they created. It’s endless.The far-right create a problem, then rail against it, then by their actions create a new problem that they then blame on others and rail against that.If the UK stops accepting asylum seekers, which is what the anti-immigrant groups want, countries that border conflict zones may also reject their international obligation, leading to many times more asylum seekers heading to the UK where they will just go underground and untracked. It could also potentially damage our relationships with trading partners that do take asylum seekers and undermine our moral position that supports our global trading and strategic interests.But hey, why look at potential problems when you can raise a pitchfork and kick off. BrotherCheFarage is stirring up the crisisProfessional agitator Farage is stirring up the crisis for political gain! Reform has NO policies but “stop the boats” – a problem Labour inherited from the Tories. However, it seems the right-wing media are pushing Farage and Reform as they are the party of the establishment, who would deregulate Britain – only an advantage for the richest few.The small boats crisis also, as giving Farage a single-issue rhetoric, masks the large legal migration that happened under the TORIES – and we are not told how large it is now! MintmanQuestionable judgementA questionable judgement. It says to local communities if you don’t want these asylum hotels/refugees in your communities, you can protest on the grounds it might make it unsafe for your children on their way home from school, and you get the council to shut them down. You just have to make a fuss on behalf of your children. chrishPlaying a very dangerous gameThe left-wing political establishment is playing a very dangerous game, bringing people into the country in this way and planting them in the middle of settled communities – and at great expense. The political establishment might think they are provoking the far-right, but in reality they are provoking ordinary people, many of whom have fallen on hard times. If they carry on like this, it could get very ugly. MarkReform don’t do solutionsI see Reform claiming credit for this judgement.I don’t see any practical solutions from Reform as to how to tackle this problem. In fact, it seems Reform don’t do solutions.While the number of asylum seekers held in hotels etc is now one for Labour to solve, it should be remembered who was responsible for this backlog to build – the last government. JRileyImmigration is here to staySome people blame Tony Blair for embracing a policy of high immigration. However, the truth is that during the Blair years, net migration was generally small but increased to between 200,000 and 300,000 per year in 2004 (Migration Policy Institute). However, in the post-Brexit years net migration rose to between 600,000 to 900,000 per year (ONS).The UK is a rapidly ageing country and cannot function without immigrants. So, immigration is here to stay and people should be grateful for that, especially pensioners and those on benefits, because immigrants pay taxes that allow the government to pay pensions and benefits. Pomerol95Kicking the can down the roadSo the far-right start to riot, and their targets are punished and moved away? Makes sense. I’d rather we get rid of the far-right that are ruining the town.Good job on kicking the can down the road a bit. BobertsonIf you don’t like immigration, don’t cheer invasionsA large proportion of recent asylum seekers come from countries like Iraq, Afghanistan, Syria, Libya – all countries which have been reduced to ruin by invasions which most of these people enthusiastically supported. If you don’t like immigration, don’t vote for people like Tony Blair or Lord Snooty Cameron, don’t cheer on “Our Boys” when they go rampaging around the world! enviousSafe routes are neededGenuine refugees need SAFE routes that the last Tory government took away, and a reintroduction of such routes would probably eliminate the small boats problem. Christopher1959Some of the comments have been edited for this article for brevity and clarity.Want to share your views? Simply register your details below. Once registered, you can comment on the day’s top stories for a chance to be featured. Alternatively, click ‘log in’ or ‘register’ in the top right corner to sign in or sign up.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here. More

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    Rachel Reeves considers ‘mansion tax’ to fill Treasury black hole

    Rachel Reeves is considering hitting the owners of high-value properties with capital gains tax when they sell their homes as part of an attempt to fill a £40bn hole in the public purse. The chancellor is said to be looking at ending the current exemption from capital gains tax for primary residences as she seeks ways to raise cash in the face of dire warnings about the state of the public finances – a move that would be seen as a “mansion tax”. Such a move would see higher-rate taxpayers pay 24 per cent of any gain in the value of their home, while basic rate taxpayers would be hit with an 18 per cent levy.Chancellor of the Exchequer Rachel Reeves More

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    Minister brands Farage ‘the very worst’ kind of politician over asylum hotel claims

    The “very worst” kind of politicians “try to drive people apart”, the security minister has said in response to comments made by Nigel Farage over the use of asylum hotels.Dan Jarvis accused the Reform UK leader of fanning the flames of division that has seen protests flare up outside hotels housing asylum seekers after Mr Farage celebrated a council’s successful legal challenge against one in Epping. Epping Forest District Council won an interim High Court injunction to stop asylum seekers being housed at The Bell Hotel, arguing it had become a “feeding ground for unrest” in recent weeks after a series of violent protests resulted in multiple arrests and saw police officers injured.Mr Farage said Reform-controlled councils will appeal the use of asylum hotels More