Hillingdon Council is considering legal action against the Government after the Home Office refused to provide it with extra funding to house asylum seekers.
The local authority has the highest concentration of asylum seekers in the country, with over 3,000 supported by the Home Office in six hotels around Heathrow Airport.
Once the cases of the asylum seekers are decided, they will be evicted from the hotels and will become the council’s responsibility.
The Home Office has refused a request from the council for extra support to cover the estimated £5m shortfall resulting from the extra demand on services.
A spokesperson for Hillingdon Council said the leader of the council was exploring the possibility of a legal challenge against the Government.
They added: 'The situation is unfair, unacceptable and is, in effect, saying that Hillingdon taxpayers should shoulder the burden of what is a national issue. This should be funded centrally rather than passing the buck and expecting our residents to foot the bill putting intolerable pressure on the council's finances.'
A Home Office spokesperson said: 'This Government inherited a broken asylum system, with tens of thousands stuck in a backlog and claims not being processed, wasting millions in taxpayer money. We are immediately speeding up decisions and increasing returns so we can end the use of hotels, and save the taxpayer £4bn by 2026.
'We remain committed to working closely with local authorities to work towards a fair and equitable spread of accommodation and provide the financial support required.'
