RAF Scampton will not be used to house asylum seekers because the plan does not represent value for money, the Home Office has announced.

The former airbase in Lincolnshire was at the heart of a plan by the previous Conservative government to accommodate migrants who arrive in the UK by small boats and other unauthorised means.

Opening the site from the autumn as planned would have cost a total of £122 million by the end of its use in 2027, meaning the site no longer represents value for money, the Government department said.

A total of £60 million has already been spent there due to work and commitments from the previous government, according to a written Commons statement by Home Office minister Dame Angela Eagle.

She said the cost would be “nearer £200m” when totalled if the scheme was carried out to its end date, and said this “clearly fails to deliver value for money for the taxpayer”.

The Government will close the site immediately and sell it in line with an established process for disposing of crown land.

Dame Angela said: “Faster asylum processing, increased returns and tighter enforcement of immigration rules will reduce demand for accommodation like Scampton and save millions for the taxpayer as we drive forward work to clear the asylum backlog and strengthen our border security.

“We have also listened to community feedback and concerns about using this site for asylum accommodation.”

Dame Angela Eagle said the Government has listened to community feedback (Richard Townshend/UK Parliament/PA)

The move comes after the Government scrapped the Rwanda plan, a policy championed by the Tories in power which was aimed at deterring migrants from crossing the Channel in small boats.

The Government intends to “return to using long-standing dispersed asylum accommodation and will do so as soon as is practicable, once we have made progress on clearing the backlog”, Dame Angela wrote in her statement to MPs.

The minister also said the Home Office would introduce a new Border Security, Asylum and Immigration Bill “at the earliest opportunity”.

The main intention of the new legislation would be to focus on disrupting the criminal gangs helping people to make Channel crossings.