UK Labour Government confirm to local MP that the contract signed by the Conservatives will be ended this year.
[Falkirk, 01.10.2026] Falkirk MP Euan Stainbank has welcomed the news that the contract for the use of the Cladhan Hotel as asylum accommodation will be cancelled this year.
No residents have resided at the hotel since August and Mr Stainbank has confirmed that no further residents will be brought back prior to the formal cancellation of the contract.
The Cladhan was first used as asylum accommodation under the previous Conservative Government in 2021. Since his election, Mr Stainbank has repeatedly pressed Home Office ministers to prioritise the hotel’s closure as part of the Government’s Hotel Exit Plan.
In August, Mr Stainbank confirmed following discussions with the Home Office that no residents remained at the hotel. He continued to press for the formal end of its use as asylum accommodation.
Mr Stainbank said:
“I know the cancellation of the contract Tory Ministers signed in 2021 to operate the Cladhan Hotel as asylum accommodation will be received as welcome news for Falkirk and as a step I have repeatedly pressed Home Office ministers to take since I was elected.
“There have been no residents at the hotel since August, but an empty hotel was not the outcome I was seeking. I have continued to push for the contract to end and for the Cladhan’s use as asylum accommodation to be brought to a formal and definitive close.
“It was never right for Falkirk and it was never right for those residing there.
“A frequent question that has been raised is where people have gone. The truth is that hotels are only being closed because the Labour Government are rapidly reducing the asylum backlog, reducing the number of people arriving to claim asylum, reducing the rate of people being accepted for asylum and subsequently bringing the cost of the system down by hundreds of millions of pounds.
“The most recent statistics showed that 67 people were in supported asylum accommodation in Falkirk at the end of June 2026. Without factoring in the fact that this was prior to the Cladhan’s use being ended, this reduction puts Falkirk in the bottom 10 local authorities out of over 300 UK-wide for the number of people claiming asylum here per capita.
“As I have said since I was elected, hotels and this hotel were wrong for the people of Falkirk and wrong for those staying there. The previous Conservative Government’s reliance on hotels was a symptom of their loss of control over the asylum system, and its use being ended is a symbol of a Labour Government bringing it back under control”.
ENDS
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