Bibby Stockholm contract will not be renewed as Labour to shut down migrant barge

Controversial Bibby Stockholm barge closure comes on a day when audit reports reveal billions wasted in government departments under Tories

The Bibby Stockholm barge, which came to symbolise the failure of Tory policy on tackling the small boats, is to be shut down by the new Labour government.

The contract for the boat, on which asylum seeker Leonard Farruku was found dead in a suspected suicide last year, will not be renewed when it ends in January.

The announcement came on a day when 12 damning reports by the National Audit Office (NAO) revealed the depth of the chaos left behind by Rishi Sunak’s Tory government with billions wasted and “systematic failures” across departments.

Auditors have uncovered billions in taxpayers’ money wasted or misspent in services ranging from fixing potholes, the funding of HS2, management of the NHS, schools and tackling chronic homelessness.

Among the highlights in the 12 NAO reports were:

• £9.2bn spent on reducing the classroom attainment gap for disadvantaged children only for it to get wider
• £100m spent to undo the work on the now cancelled legs of HS2 which had already gone £6bn over budget
• Up to £1.6bn a year spent on fixing potholes with a lack of information on where and how the money was being spent
• Mismanagement of the NHS means that it will have a shortfall in funding of tens of billions by the end of this parliament
• £1.6bn was spent by councils in just one year on temporary accommodation for people who are homeless
• A lack of a central coordinated approach in setting up compensation schemes for issues like the Post Office/Horizon and infected blood scandals

Ellie Reeves, Labour Party chair, said: “These reports lift the lid on the chaos left by the Conservatives. From axed projects, eye-watering waste of taxpayers’ cash, and ‘unprecedented’ challenges left in our NHS, this is the inheritance the Tories have left after 14 years in power. And it is down to this Labour government to pick up the pieces.”

But a Tory spokesperson said: “Of far greater concern is Labour’s refusal to commit to £30bn of vital transport investment across the north and midlands. This is going to boost connectivity and economic growth across the region and scrapping it wasn’t included in their manifesto.”

The Bibby Stockholm contract announcement forms part of Labour’s plan to make £7.7bn of savings in asylum costs over the next decade. Extending the contract for a holding centre which had been dubbed “inhumane” would have cost another £20m.

Dame Angela Eagle, minister for border security and asylum, said the Home Office has set in motion plans to save money on accommodation which is “running up vast bills for the taxpayer”.

Home secretary Yvette Cooper on Monday set out plans to clear the asylum backlog, something the department said would save “billions of pounds” after she also revealed that the government had wasted £700m on the Rwanda deportation scheme.

A view of the Bibby Stockholm barge at Portland Port in Dorset (Matt Keeble/PA) (PA Wire)

The Home Office disclosed last year that the barge, moored in Dorset, is costing taxpayers £41,000 a day, equivalent to £205 per person. This is more than the estimated £140 per night for a stay in a hotel.

The three-storey barge, which has capacity to house 500 people, has been used to house male asylum seekers aged 18-65 since August 2023.

Lloyd Hatton, MP for South Dorset, dubbed the barge, which was commissioned by former home secretary Suella Braverman, an “unworkable, expensive and ineffective gimmick”, accusing the previous government of having failed to listen to concerns from the local community.

Mr Hatton added: “I will now spend every day making sure that the closure of the barge happens in an orderly fashion. We must not forget that the previous Conservative government landed our community with the barge.

“The previous [government and] Tory MP failed to properly listen to our concerns from the get-go. This is the difference a Labour MP working hand-in-hand with a Labour government can make.”

Dame Angela Eagle, minister for border security and asylum, said the Home Office has set in motion plans to save money on accommodation (PA)

Dame Angela said: “We are determined to restore order to the asylum system, so that it operates swiftly, firmly and fairly; and ensures the rules are properly enforced.”

Steve Smith, chief executive of Care4Calais said: “The Bibby Stockholm became the physical symbol for the last government’s inhumane treatment of people seeking sanctuary in the UK.

“The despair and suffering the barge has caused will live long in the people who were residents of it. Nor will not renewing the contract bring back Leonard Farruku, whose family have lost their loved one forever.”

The barge was just one aspect of the previous government’s policies to come under the microscope yesterday.

One NAO report warned: “The scale of challenge facing the NHS today and foreseeable in the years ahead is unprecedented.”

Another noted: “Dealing with homelessness is creating unsustainable financial pressure for some local authorities.”

On HS2 it warned that the government and delivery company need to “agree a realistic budget to deliver them, and re-establish control so that risks and costs can be managed effectively and benefits delivered for both passengers and taxpayers.”

On potholes the NAO said: “At present Department for Transport (DfT) does not have a good enough understanding of the condition of local roads, and does not use the limited data it does have to allocate its funding as effectively as possible.”

Edmund King, AA president, said: “The NAO report is a damning indictment of the state of England’s local roads and their upkeep.”

Elaine Kelly, head of economics research at the Health Foundation, said: “The NAO report paints a picture of systemic failures and inefficient decision making – including low spending growth, chronic under-investment in capital, and a culture of agreeing to unrealistic targets. For patients, this has contributed to longer waits and reduced satisfaction with the health service.”