Hillingdon Borough Council in West London is facing a £17 million deficit, a financial gap that officials say is caused by the rising costs of supporting asylum seekers. On July 22, 2025, council leaders warned that without more help from the central government, local taxpayers will bear the burden, and essential services could be cut. This crisis highlights the growing pressure on local councils across the United Kingdom 🇬🇧 as they struggle to manage the impact of national asylum policies and funding shortfalls.
A Growing Deficit and Its Causes

Hillingdon Borough Council, led by the Conservative Party, has made it clear that the £17 million shortfall is directly linked to the costs of accommodating and supporting about 3,000 asylum seekers in the borough. Council officials have stated that the funding provided by the central government is not enough to cover these expenses. As a result, the council must use local funds, putting extra pressure on its budget.
The council’s leader explained, “We have always supported people in need, but the current funding model is unsustainable. Local taxpayers cannot be expected to pay for a national problem.” This statement reflects the frustration felt by many local authorities who are dealing with similar challenges.
National Trends: More Asylum Seekers, Bigger Backlogs
Hillingdon’s situation is not unique. Across the United Kingdom 🇬🇧, the number of people seeking asylum has risen sharply. In the year leading up to March 2025, asylum applications increased by 15%, reaching 85,112 applications for 109,343 people. The number of people arriving in small boats across the Channel also jumped by 22%, with 38,023 detected arrivals during the same period.
This surge in arrivals has put extra pressure on the asylum system. At the end of March 2025, there were about 79,000 cases waiting for an initial decision and another 51,000 cases waiting for appeal decisions. The number of asylum seekers receiving government support grew to 107,000, and more than 32,000 people were housed in hotels.
Policy Changes and Their Impact
The backlog in asylum cases is partly due to recent policy changes. The Illegal Migration Act of 2023 and new Home Office rules slowed down the processing of asylum claims, which increased the number of people needing support from local councils. Although a key part of the Act was repealed in July 2024, allowing some processing to resume, the backlog remains large.
These delays mean that asylum seekers spend more time in temporary accommodation, such as hotels or council-provided housing. This, in turn, increases the costs for councils like Hillingdon, which must provide food, shelter, and other support while people wait for decisions on their cases.
Local Taxpayers and Service Cuts
The financial strain is now being felt by local residents. Hillingdon Borough Council has warned that the £17 million deficit could force them to cut spending on other important services, such as social care, education, and infrastructure. Some residents worry that council tax rates could rise or that services they rely on will be reduced.
A local resident shared, “We understand the need to help people fleeing danger, but it’s not fair for our community to pay the price for government delays and underfunding.”
Government Response and National Debate
So far, the central government has not made a direct statement about Hillingdon’s deficit. In the past, government officials have said that the national asylum challenge is complex and that policy reforms are underway. However, these changes have not yet provided relief for councils facing immediate budget problems.
The government has introduced the Border Security, Asylum and Immigration Bill (2025), which aims to tighten eligibility for social protection, raise income thresholds for visa holders, and set stricter rules for indefinite leave to remain. While these measures may change the system in the future, they are not expected to help councils like Hillingdon right now.
There are also proposals to set a three-month service standard for asylum casework, which would speed up decisions and reduce the time people spend in council accommodation. However, it is not clear when these changes will take effect.
Labour Government’s Promises
Since taking office in late 2024, the Labour government has promised to clear the asylum backlog and reduce the use of hotels for housing asylum seekers. Despite these pledges, there has been no clear timeline or new funding commitments for local authorities as of July 2025.
Wider Impact: Other Councils at Risk
Hillingdon is not the only council facing these challenges. Many local authorities, especially those near major ports or airports, are reporting similar budget crises linked to the costs of supporting asylum seekers. If the central government does not provide more funding or reduce the backlog quickly, other councils could also face large deficits, leading to more service cuts or requests for emergency help.
Expert and Advocacy Group Views
Migration policy experts say the crisis is the result of both more people arriving and delays in processing claims. Restrictive national policies and not enough local funding have made the problem worse. Advocacy groups like Asylum Matters and the Refugee Council are calling for a complete overhaul of the asylum system. They want higher support rates, faster decisions, and a move away from using hotels and other institutional accommodation.
The Local Government Association (LGA) and other groups representing councils are pushing for an urgent review of the funding model. They argue that councils should get direct compensation for extraordinary costs related to asylum support.
How the Deficit Affects Communities
The £17 million deficit is more than just a number. It affects real people in Hillingdon and beyond. If the council is forced to cut services, vulnerable groups such as children, the elderly, and people with disabilities could lose access to the help they need. Schools may have fewer resources, and public spaces could see less maintenance.
At the same time, asylum seekers may face longer waits for decisions and may have to live in temporary accommodation for extended periods. This can make it harder for them to settle, find work, or contribute to the community.
Possible Solutions and Next Steps
While the situation is serious, there are steps that can be taken to ease the pressure:
- Increase Central Government Funding: The most direct solution is for the central government to provide more money to councils facing high asylum support costs. This would help cover immediate expenses and prevent service cuts.
- Speed Up Asylum Decisions: By processing asylum claims faster, the government can reduce the time people spend in temporary accommodation, lowering costs for councils.
- Reform the Funding Model: Many experts and councils are calling for a new funding formula that takes into account the actual number of asylum seekers in each area and the real costs of supporting them.
- Move Away from Hotels: Finding more suitable and cost-effective accommodation options for asylum seekers can help reduce expenses and improve living conditions.
- Improve Coordination: Better communication and planning between central and local government can help ensure that resources are used efficiently and that councils are not left to handle the problem alone.
What This Means for the Future
Without quick action, Hillingdon Borough Council and others may continue to struggle with large deficits. This could lead to a broader crisis, with more councils forced to cut services or ask for emergency help. The issue is already fueling debate in Parliament and among stakeholders about the need for comprehensive reform of the asylum system.
As reported by VisaVerge.com, the situation in Hillingdon is a warning sign for the rest of the country. Unless the government addresses the funding gap and speeds up asylum processing, more communities could face similar challenges.
Official Resources and Where to Get Help
For those seeking more information or official statements, the following resources are available:
- Hillingdon Borough Council: Visit the official council website for updates and contact details.
- UK Home Office: For national asylum policy and support information, see the Home Office asylum support pages.
- Local Government Association (LGA): The LGA provides advocacy and policy positions on asylum funding for councils.
Conclusion: A Call for Action
The £17 million deficit faced by Hillingdon Borough Council is a clear sign that the current system is not working for local communities or asylum seekers. With more people arriving and decisions taking longer, councils are being asked to do more with less. Unless the central government steps in with more funding and faster processing, the strain on local services will only grow.
For residents, this means possible cuts to services they rely on. For asylum seekers, it means longer waits and more uncertainty. For councils, it means tough choices and growing frustration.
The situation demands urgent attention from policymakers, better funding for local authorities, and a fairer, faster asylum system. Only then can communities like Hillingdon provide support to those in need without putting their own services at risk.
Actionable Takeaways:
- Residents: Stay informed about council decisions and voice concerns to local representatives.
- Councils: Continue to push for fair funding and share data on the real costs of asylum support.
- Government: Prioritize funding reforms and speed up asylum processing to reduce pressure on local authorities.
- Asylum Seekers: Seek support from local organizations and stay updated on changes to the asylum process.
For the latest updates and official guidance, always refer to the UK Home Office asylum support pages.
By working together, communities, councils, and the government can find solutions that protect both local services and the rights of those seeking safety in the United Kingdom 🇬🇧.
Learn Today
Asylum Seekers → Individuals seeking protection in the UK from persecution or harm in their home countries.
Deficit → The amount by which expenses exceed income, causing financial shortfall in local councils.
Backlog → Accumulation of unresolved asylum cases waiting for initial decisions or appeal outcomes.
Illegal Migration Act 2023 → UK legislation that slowed asylum claim processing, contributing to increased support costs.
Temporary Accommodation → Short-term housing provided by councils, such as hotels or council estates, for asylum seekers.
This Article in a Nutshell
Hillingdon Borough Council warns of a £17 million deficit caused by rising asylum seeker costs. National asylum applications rose 15%, straining councils. Delays in processing and insufficient funding risk cuts to vital local services, urging urgent government action for reform and increased support to prevent community harm.
— By VisaVerge.com