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Hotel accommodation for asylum-seekers strips money from the aid budget and threatens the health of people seeking safety, charities warn

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Almost a quarter of the overseas aid budget will be spent on asylum accommodation in the UK next year while overall spending suffers dramatic cuts.

Delivering her spending review plans to MPs on Wednesday, chancellor Rachel Reeves said the government planned to end the “costly" use of hotels for asylum-seekers by July 2029, which is paid for from the overseas aid budget. But a rule change means any savings will not be used to top up overseas spending.