The largest city councils in England and Scotland fear that Government plans to speed up asylum decisions will result in thousands of people facing homelessness.
Under the Government's streamlined asylum process, applications will be processed for 1,000 asylum seekers in Birmingham and 2,500 in Glasgow by the end of the year.
Birmingham City Council warned the increased rate would ‘without doubt' lead to a rise in homelessness.
Costs of supporting people with housing will fall on councils, with Glasgow City Council estimating a £50m financial impact.
Glasgow leader Susan Aitken said the Home Office ‘thinks closing hotels will convince voters it is delivering on its ugly rhetoric about getting tough on asylum – when all it is actually doing is moving people around like chess pieces.'
She added: ‘Out of sight, out of mind is now the entirety of its asylum policy – even at the risk of a humanitarian crisis in towns and cities across the UK.'
A Home Office spokesperson said: ‘The pressure on the asylum system has continued to grow, which is why we have taken immediate action to speed up processing times and cut costs for taxpayers.
‘To minimise the risk of homelessness, we encourage individuals to make their onward plans as soon as possible after receiving their decision, whether that is leaving the UK following a refusal or taking steps to integrate in the UK following a grant.'