The Home Office spent £15million buying an abandoned prison contaminated with asbestos in a bid to stop housing migrants in hotels, the spending watchdog has revealed.

The authorities saved and paid more than necessary in their haste to acquire the Northeye site in Bexhill-on-Sea, East Sussex, but it was “ultimately deemed unfit for its intended purpose due to the contamination,” the National Audit Office (NAO) said. ) said.

A report published on Friday shows the site was purchased for around £6.3 million by sellers Brockwell Group Bexhill Limited Liability Partnership in August 2022.

But the Home Office completed the sale in September 2023 for around £15.4 million, more than double what was paid for the site 12 months earlier.

The Home Office was criticized for making “rushed and poorly judged” decisions which resulted in “paying too much” for a site which was “not fit for purpose” and said MPs would ensure so that taxpayers’ money is not “wasted on future acquisitions”.

The sale took place after then-Prime Minister Rishi Sunak pledged on December 13, 2022 to stop housing asylum seekers in hotels and find accommodation in disused holiday parks, former student residences and surplus military sites, telling the Commons: “to Unless we act now and decisively, the situation will only get worse.”

The statement to Parliament “generated significant pressure within the Home Office to quickly identify and secure accommodation sites for asylum seekers”, the report said.

The same month, the Ministry of the Interior “decided to acquire the Northeye site by purchasing it from the sellers rather than renting it” as initially planned, the NAO noted.

On January 16, 2023, the Home Office had asked property advisers to make an offer to the sellers of the Northeye site on the basis of completion within six weeks.

The site was one of four “acquired by the Home Office under the direction of a small ministerial group” and on January 19, 2023, the group agreed to prioritize the Northeye site, the report said.

The NAO said the group, established in November 2022, was made up of “ministers and officials from across Whitehall, including the Minister for Immigration, and was chaired by the Chancellor of the Duchy of Lancaster”.

These positions were at the time held by Robert Jenrick – now shadow justice secretary after his failed bid to become leader of the Conservatives – and Oliver Dowden, who was later appointed deputy prime minister.

In February 2023, planning checks revealed “high risk” contamination across the entire site and a further review concluded that “the main risk of contamination was from asbestos containing materials in existing buildings and contaminated soils.

A “due diligence report” also indicated that repairs to the buildings could cost “in excess of £20 million”, but this was not mentioned in the Home Office’s internal advice, the Home Office said. NAO.

Mr Jenrick announced on 29 March 2023 that his government would develop the Northeye site to accommodate 1,200 migrants, with the Home Office finalizing the sale for around £15.4 million on 21 September 2023.

The group of ministers “dismissed the need for a full business case before approving the acquisition”, according to the NAO findings.

The watchdog’s report concluded: “The Home Office’s attempt to acquire the Northeye site in just a few months… led it to cut corners and make a series of poor decisions .

“This led to him purchasing a site that was not fit for its original purpose and paying more than necessary.”

In July this year, the Home Office said no decision had been made on the use of the site and that it would “consider its wider strategy and requirements before deciding on its use future”.

Although the site “could still meet a need for the Home Office, it remains to be seen whether the acquisition of the Northeye site will provide benefits justifying its cost”, the NAO added.

Sir Geoffrey Clifton-Brown, chairman of the House of Commons Public Accounts Committee, said: “Once again, rushed and poorly judged decision-making has led to the Home Office paying too much for a accommodation site for asylum seekers which is not fit for purpose.

“I am concerned that the Home Office has deviated from standard practice, neglected warnings about the condition of the site and lacked the expertise to properly oversee the Northeye purchase.

“The Public Accounts Committee has previously warned of the risks to taxpayers’ money when departments forgo due diligence in making rapid decisions.

“My committee will follow up on this matter to ensure that repeated mistakes are not made and that public money is not wasted on future acquisitions.”

The NAO report said: “It is encouraging that the Home Office has taken steps to understand what went wrong and has made changes to improve… But this case illustrates the need to respect minimum standards and not to renounce due diligence. especially in times of intense pressure. »

The Home Office noted that the report focused on the actions of the previous government and said: “Having inherited an asylum system under exceptional strain, with tens of thousands of cases blocked, we remain determined to end the use of hotels and accommodation for people. in a more appropriate and cost-effective manner, thereby providing better value for the taxpayer.

“We are restarting the asylum system, increasing returns of people who have no right to be here, with more than 9,000 people expelled since July 2024. We will continue to restore order to the system so that it operates quickly, firmly and fairly.