We are concerned that the Home Office has not engaged effectively with local authorities about the impact its work is having on local areas. The Home Office is making progress in its plans to reduce its use of hotels. By the end of March, it had exited 100 hotels, with around 300 still in use. But it still could not say when it intends to stop using hotels altogether. The Home Office’s actions to reduce its reliance on hotels risk having unintended consequences such as driving up rental costs, increasing homelessness and putting unacceptable pressure on local councils. There are also substantial additional costs for local areas where the Home Office develops alternative accommodation such as large sites. West Lindsey District Council, in which the site at Scampton resides, estimates that it and its neighbouring councils have faced additional costs of nearly £0.5 million as a result of needing to employ additional staff and updating infrastructure. We are pleased to hear the Home Office is now sharing more data with local authorities about the asylum seekers in their communities and that it has put in place dedicated liaison officers. Recommendation 4: The Home Office should, within three months, write to us setting out what it will do to better understand the impact its asylum policies are having in local areas and how its liaison officers will help resolve the litany of problems raised with us by councils.