The system to disperse asylum seekers away from the south east descended into farce this week as infighting broke out between regional consortia.
The Local Government Association struggled to maintain order as furious councils in the north west attacked the "massive incompetence" of the south east.

Authorities in the north west consortium claimed they face massive losses after securing more than 1,200 units of accommodation - half of which are lying empty.

They blamed the "ludicrous situation" on Westminster council and Kent, which recently came under fire for placing asylum seekers in private sector accommodation instead of using the official dispersal programme.

But London authorities insisted they had not been told of any surplus housing and assumed that all properties had been filled.

Liverpool's executive member for housing Richard Kemp said the city faced a £180,000 loss because barely 60 per cent of its 275 properties - acquired specifically for the dispersal scheme - were occupied.

In a letter to the LGA's asylum seekers unit head Mike Boyle, he said: "Kent and London authorities are maintaining high cost places in the private sector that are being used whilst we are paying for better quality spaces that are empty.

"This shows a massive incompetence on the part of the London consortium which is headed by Westminster council and Kent."

Kemp told Housing Today that Liverpool and others could withdraw any further support for the programme unless the situation was resolved.

A London Asylum Seekers Consortium spokeswoman said discussions would continue with Liverpool and its partners to develop the referral system. "Currently all the available accommodation that LASC has been notified of in Liverpool has been filled. LASC is not aware of any accommodation in Liverpool that is waiting for occupancy."

An LGA spokeswoman blamed the row on a communication breakdown, and on problems with transportation: "Currently we have to double-book coaches for asylum seekers, because when it comes to departure time half of them haven't arrived."