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The Guardian - UK
The Guardian - UK
National
Kiran Stacey Political correspondent

Hundreds of millions in UK aid returns to Treasury in VAT on asylum hotel bills

United Kingdom ODA OECD
A logistics officer places UK Aid stickers on to cargo pallets containing aid items destined for areas suffering humanitarian crisis,
The cost of housing asylum seekers in hotels while their applications are processed is about 16% of the aid budget. Photograph: Ben Birchall/PA

Hundreds of millions of pounds in British aid spending are returning to the Treasury each year in tax, thanks to the rising cost of housing asylum seekers in UK hotels.

The government says it is paying VAT on its bills for hotels to accommodate asylum seekers, while also classifying such spending towards its overseas development spending target.

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