Home Office Rejects ‘Conflict of Interest’ Claims in £460M Asylum Sites Deal

The Home Office has denied any conflict of interest after awarding a large contract to run two asylum processing sites in Kent. Mitie Care and Custody has mounted a High Court challenge to the decision.

Legal challenge

Mitie, a subsidiary of Mitie Group, filed formal court papers in February. The company seeks to have the award to MTC Definitive set aside or to win the contract itself.

Mitie also asked the court to order a re-run of the procurement process. Alternatively, it seeks damages if the court finds faults in the tender award.

Allegations and key personnel

The dispute centres on MTC’s head of development and solutions, Dave Butler. He previously served as deputy director at Manston.

Mitie argued the Home Office failed to prevent and remedy conflicts of interest during the tender. It claims that created an unfair advantage for MTC.

Home Office response

The Home Office filed a defence in March. Azeem Suterwalla KC described the claim as baseless and without merit.

The department accepted Mr Butler had access to sensitive information while at Manston. It said he did not shape procurement strategy for the contract.

The Home Office added Mr Butler was subject to a 12-month restriction after leaving Manston. This rule was designed to limit commercial activity tied to his former role.

Assessment of risk

The Home Office argued the combination of limited decision-making and the 12-month condition removed any serious risk. It denied there was, or could be, a perceived conflict of interest.

Contract and sites

The award covers services at Manston and the Western Jet Foil facility in Dover. The facilities are used for arrivals from small boat crossings of the English Channel.

The tender was advertised in October 2024. It runs for six years and was split into two lots.

• Lot 1: £462.6 million for catering, transport, security and related services.
• Lot 2: £58.7 million for healthcare services.
• Total value quoted: £521.3 million before VAT.

Mitie’s timeline and complaints

Mitie submitted its bid for the £462.6 million lot in September 2025. The company was told it had been unsuccessful in January 2026.

After that decision, Mitie wrote to the Home Office with multiple concerns. The company said the department’s responses did not address those issues.

Specific criticisms

In court documents, Ewan West KC for Mitie alleged manifest errors in scoring and decision-making. He said the Home Office failed to give sufficient reasons for awarding the contract to MTC.

Mitie also asserted MTC’s bid did not meet minimum staffing requirements under the tender rules. The company argued that made MTC non-compliant.

Home Office rebuttal on compliance

The department responded that it had provided reasons for its decision. It also maintained MTC’s proposal met the minimum staffing thresholds.

The Home Office denied Mitie was entitled to the remedies it seeks. It said there was no breach of obligation that would justify those remedies.

Filmogaz.com will continue to monitor court filings as the case progresses. The outcome could affect how future asylum sites contracts are awarded.