The former Chair of the Home Affairs Select Committee has said the Home Office is “not fit for purpose” and are unable to negotiate big, commercial contracts.

Speaking to GB News Tim Loughton said:

“It is getting worse and these figures today are just extraordinary. We knew a load of money was going on hotels; but three times, four times, what was effectively budgeted for in this 10 year deal?

“We looked at these hotels and other accommodations provided by private firms some years ago. Back in 2018 the Home Affairs Select committee had an inquiry then, because the standard of the accommodation left a lot to be desired, be it in poor hotels or in rented accommodation.

“We were promised that the new contracts, ten year contracts, which were signed back in 2019, would get value for money, and in case there was any profiteering by these companies running accommodation, there would be a profit share back with the government refunded.

“There’s a break clause in the contract, which comes in next year. What we’ve learned today is none of that money has been refunded to the Home Office. They haven’t actually gone after it, and so that break clause absolutely needs to be brought into effect next year.

“It is just extraordinary how much money has been wasted on hotel accommodation. And the now government, when they were in opposition, saying ‘oh we must end all of this hotel accommodation, it’s going to be easy, just elect us,’ and the numbers are going up again.

“Even the current Home Secretary admitted that the Home Office is not fit for purpose. But those of us who are on the Home Affairs Select committee, I was on it for 10 years, this is no secret. We’ve known that the Home Office has been the most dysfunctional department in government, and on so many fronts, be it small boat crossings, now the Chinese spy scandal, the grooming gangs.

“So often, I’m afraid, it comes back to incompetence and poor management in the Home Office. Civil Servants, frankly, in the Home Hffice were not up to muster in negotiating big, commercial contracts with the companies offering this accommodation. And I’m afraid the figures lay that absolutely bare today.

“That’s why, under the last government, which again is guilty of mismanagement in many cases here, but that’s why, when the contracts were signed in 2019 to guard against excessive profits, there was this cap put, and then profits will be shared, and that money should come back to the Home Office.

“There were safeguards put in that contract, and the Home Office just hasn’t even enforced those safeguards. I mean, it’s beyond belief.
“There’s the conspiracy or cock up theory, but frankly, spending three and a half times as much on hotel accommodation, which I think everybody agrees is not a good use of money, and it’s costing something £145 per person per night. You can get a pretty decent hotel for just staying on holiday.

“In other accommodation, which we were trying to extend, the prices are like £23 per night. So this is a really bad use of money. And even if your conspiracy theories, which I don’t agree with are true, then it’s not a good advert for the way we manage migration to be wasting so much money on those migrants that we have to accommodate.

“And of course, that number is going up, and we found out last week that the numbers who have come here last week has exceeded the whole of last year.

“I agree the Home Office has been really inefficient and incompetent at dealing with this in the past. I don’t see the evidence as part of some big conspiracy. I’m afraid the evidence points to the fact that the Home Office is just not fit for purpose and certainly cannot handle these sorts of big contracts.

“But the now government were making out in opposition that this was all down to the last government, and they would just solve everything by coming into power. Well, they’ve found out it’s a lot more difficult to solve than they were trying to claim, and now they’re paying for the consequences of it.”