Stay Belvedere faces heat over £700m asylum deal amid Labour-Tory blame game

A major hotel firm, Stay Belvedere Hotels Ltd, has sparked controversy after reports revealed it received £700 million annually in taxpayer funds to house asylum seekers across 51 sites in the UK.

Critics have likened the accommodation — including the Ibis Budget in Bishop’s Stortford — to "all-inclusive resorts," offering free meals, fitness classes, guitar lessons, and entertainment for residents.

The rising cost of housing 38,000 asylum seekers in 210 hotels has drawn sharp political attacks. Shadow Home Secretary Chris Philp blamed Labour’s "loss of border control," highlighting that £5.5 million is spent daily on hotel accommodation. He argued that migrants should have been deported to Rwanda under a now-cancelled scheme.

Labour officials hit back, claiming the Tory government let the system spiral, with costs peaking at £8 million per day under their leadership. They maintain that Labour reforms are saving "billions" and are committed to ending the use of asylum hotels entirely.

A whistleblower described the Ibis setup as comparable to a four-star resort, complete with fresh meals, fruit, and daily activities. Despite political pressure, crossings continue to rise, with 9,638 small boat arrivals already recorded in 2025 — a 45% increase over last year.

Stay Belvedere Hotels, recently dropped as a government contractor due to "falling short of expectations," made a pre-tax profit of £62.6 million last year. The Home Office said they are transitioning the hotel contracts to new providers and increasing financial scrutiny on migrants claiming asylum support.

Stay Belvedere’s government deal is scheduled to end by September 2026 as authorities aim to slash hotel dependency.