The Telegraph revealed that Ms Reeves is expected to say the black hole in the public finances is around £19bn, with an initial estimate pointing to that figure.
This newspaper now understands that among the “hidden” problems raised by the Chancellor is the scale of planned spending on housing asylum seekers in hotels, which is more than three times what was previously planned.
The Home Office estimates that the cost of supporting asylum seekers will increase by £30 billion to £40 billion over the next four years, or around £10 billion a year.
This is much more than previously thought. It was reported that £8 million was being spent every day on asylum seeker hotels, which amounts to £3 billion a year.
“Completely out of control”
A government source familiar with Monday’s plans said the asylum hotels bill was “completely out of control” under the Conservatives.
Another said: “We are going to face huge costs for asylum seeker accommodation over the coming year until we can speed up the processing of applications. But that won’t happen overnight.”
The move to house asylum seekers in hotels, with the state paying the bill, was a measure taken under the Conservatives in response to the increase in the number of small boats crossing the Channel carrying migrants to the UK.
During the election campaign, the Conservatives accused Sir Keir of not having a detailed plan to end small boat crossings.
The prime minister has abandoned the conservatives’ plan to deport Rwandans, calling it a “gimmick” and instead focusing on “eliminating gangs” that smuggle people in small boats.
