Plans to convert a prison into asylum accommodation have been scrapped.
Bexhill MP Keiran Mullan today published a letter from the government confirming the plans for the Northeye site in Bexhill are not going forward. Instead, the site will be sold.
Last month, the National Audit Office found that the government had paid millions more than it needed to for the contaminated site because the sale had been rushed through.
Dame Angela Eagle, Home Office Minister for Border Security and Asylum, wrote to Dr Mullan today.
The letter said: “The purchase of the Northeye site was made under the previous government. This government inherited an asylum system under exceptional strain, with tens of thousands of cases stuck in a backlog.
“The government has now made the decision not to progress with this site.
“Moving forward, steps will be taken to ensure the onward sale of the site is carried out appropriately, and the correct market value is reflected.”
Dr Mullan said “I know residents will join me in welcoming the government’s decision not to proceed with an immigration accommodation site at Northeye in Bexhill.
“I want to thank campaigners, and cross-party councillors across all layers of local government for fighting against this plan. I’ve done all I can to support them. I am especially pleased for the residents of the Northeye Estate for whom the uncertainty and worry is over.”
Cllr Doug Oliver, leader of Rother District Council said: “After almost two years of uncertainty and unanswered questions, we welcome the decision by the new Government not to push ahead with plans to use the former Northeye prison site in Bexhill to house asylum seekers.
“Apart from serious questions about the safety of the site and its buildings, we shared residents’ concerns about the impact such a plan would have on the community and local services, particularly those living near the site.
“It’s unfortunate that residents have faced months of uncertainty without any information from the previous Government, but I am sure they will, like us, be relieved to finally have an answer.
“The letter promises that steps will be taken to ensure the onward sale of the site is carried out appropriately and we look forward to a discussion with the Home Office regarding the future use of the site.”
The government bought the former HMP Northeye in September last year.
In a report published last month, the NAO found the Home Office’s quick acquisition of Northeye, to meet its then priority to end the use of hotels to put up asylum seekers, led to it cutting corners and paying more than it needed to.
It chose to dispense with established processes, including the requirement for a full business case and a full assessment of the remediation required on the site, despite significant risks being flagged.
The cost of remediation was underestimated before contracts were exchanged, committing the Home Office to the purchase.
The Home Office also underestimated the time it would take between exchanging contracts and completing the purchase, leading it to pay the vendors an additional £0.9 million.
As a result, it purchased a contaminated site for £15.4 million, with remediation costs estimated to be in the range of £1.1 million to £3.6 million.
During the purchase, the Home Office rejected offers of expert advice from other parts of government, relying instead on contracted staff but without putting in place sufficient oversight.
There was limited reference to the potential scale of contamination or the need for further investigation in key decision-making documents, resulting in poor decisions.