MPs have raised concerns that the Government has not engaged effectively with local authorities about the impact of its asylum policies.

A critical report by the Public Accounts Committee (PAC) concluded there was ‘little to show' for the significant sums spent on schemes like the Rwanda partnership and large accommodation sites.

The PAC said, despite progress ending the use of hotels, there were still around 300 in use, with the Home Office unable to say when it planned to stop using them.

It noted that reducing reliance on hotels risked driving up rental costs, increasing homelessness and ‘putting unacceptable pressure on councils'.

The report also said the Home Office made ‘unacceptable and avoidable mistakes' and failed to ensure value for money in its ‘haste' to establish large accommodation sites.

Work preparing RAF Wethersfield and RAF Scampton for asylum seekers has cost £49m and £27m respectively.

The Home Office had estimated costs of £5m for each site.

Braintree DC yesterday withdrew a legal challenge over the Government's use of RAF Wethersfield because the Home Office had obtained a special development order (SDO), which extends its use as asylum accommodation by three years.

The council said this planning permission, which came into force last month, meant it was no longer ‘expedient' to pursue an appeal.

Braintree leader Graham Butland said: ‘We've spent the last few months carefully considering our legal challenge and with the SDO now in place, we feel at this time it is within the best interest to safeguard our resources and money.'

Earlier this week, West Lindsey DC announced it had reached an ‘agreement in principle' with the Home Office on RAF Scampton, meaning it had to withdraw any outstanding legal action.