Serco has pushed back against accusations from Reform UK’s home affairs spokesperson Zia Yusuf that the outsourcing giant is actively hostile to the party’s immigration agenda.
Yusuf cited a Telegraph report suggesting Serco would refuse to support Reform’s deportation plans if the party entered government, prompting him to fire off a sharply worded public letter to the firm.
In the letter, published on social media, Yusuf claimed the company “believes itself to be an alternative power base to the duly elected government of the United Kingdom, and is willing to act contrary to the interests of the British electorate.”
Yusuf warned that “a Reform government would be left with no choice but to view Serco as a threat to national security” if the Telegraph’s account proved accurate.
He added that a Reform government would “initiate an accelerated review” of government contracts and exercise break clauses with Serco “where possible,” making clear the party would not tolerate contractors taking political stances.
Serco responded firmly, stating it had not taken any policy positions and that “inaccuracies” in the Telegraph report were corrected “following our representation” to the newspaper.
In a statement shared with City AM, Serco said: “As a matter of longstanding company policy, Serco does not take political positions, nor do we comment on the policy programmes of political parties.”
The company stressed that “policy decisions are matters for whatever party is in government,” and that its responsibility is simply to deliver services as directed by contracting authorities, as it has done for 60 years.
Serco also confirmed its ongoing role in the immigration system, stating: “We operate across many parts of the immigration system, including detention and preparation for removals. We would expect to offer and perform such services in the future.”
Serco earns more than £1bn annually from UK government contracts and has been one of the main operators of asylum hotels, alongside London-listed Mears Group and Clearsprings Ready Homes, headed by billionaire Graham King.
Contracts for asylum hotel accommodation have cost the government £15.3bn over the ten years to 2025, according to an audit report, drawing sustained scrutiny over the scale of spending involved.
Asylum contractors have faced pressure over profits generated from these agreements, with providers committing to return gains that exceed five per cent, adding another layer of political sensitivity to their operations.
The current asylum contract is set to run until 2029, with officials aiming to shift asylum seekers from hotels into army barracks and Houses in Multiple Occupation.
At the end of March 2026, there were 97,519 people receiving asylum support in the UK, with around 20,885 staying in asylum hotels specifically.
Serco chief executive Anthony Kirby previously told City AM the firm had reduced the number of asylum hotels it operated from around 120 to roughly half that figure, in line with shifting government policy.
Kirby noted: “Unfortunately, we don’t forecast demand, that’s the responsibility of the Home Office, but we stand ready to provide safe and secure accommodation to meet the Home Office’s demand.”