A Suffolk council's plans to spend £320,000 to resettle refugees has sparked controversy.

West Suffolk Council has revealed its plans to spend £320,000 on temporary housing to resettle Afghans and Ukrainians.

The purchase would be made with the help of the government’s £938,600 Local Authority Housing Fund (LAHF) and will be used, initially for Afghan families leaving temporary hotel accommodation.

This means the grant has been made available to fund 40 per cent of the purchase, or £112,000 — the maximum available for each unit — with the council picking up the remaining 60 per cent of the bill, at about £188,000.

The council hopes the new property will greatly help in the task of reducing the need for expensive bed and breakfast accommodation, retaining more money for other investments.

In total, it is expected that the purchase will save around £35,000 in bed and breakfast costs each year.

Cllr Richard O’Driscoll, the cabinet member for housing, said: “This is a Government scheme which provides funding specifically to help councils meet the issue of housing Afghan and Ukrainian refugees.

“This provides the council with a good way of buying much-needed temporary accommodation which also frees up other properties.”

This comes as the council continues to experience rising case numbers of families and individuals presenting as homeless as a result of the cost-of-living crisis.

Questions have been raised as to what impact the purchase of the property would have on the state of the council’s finances.

Cllr O’Driscoll, however, has reassured that this spending will have no impact on how services are delivered across the district.

He said: “The council maintains a fund to be used to seize on these opportunities which means we are in a good position to bid and benefit from such national schemes.

“At the same time, it reduces the current financial pressure on the authority through the cost of bed and breakfast and supplies an income which means the housing can continue to be used when its current need finishes.”

Nevertheless, Cllr Nick Clarke, the Conservative group leader, believes there should be more scrutiny paid to this spending as the money could be used for other things.

Because the total spending is below the £500,000 threshold, this means approval can be made by the relevant portfolio holders, and not have to go through a full council meeting.

Cllr Clarke also makes note of the controversial nature of the proposal as the debate concerning immigration has remained fervorous since the implementation of the new Illegal Migration Bill.

He said: “It’s less about the issue of the money being spent and much more about the fact that this is a particularly contentious issue which is being decided under delegated authority.

“Whether you like it or not, it’s a national issue, and there should be an adequate opportunity for people to debate that in public because of the nature of the decision.”

As it stands, the council currently owns a mix of 36 units of temporary accommodation meant to support families and vulnerable people who have become homeless.

Although this purchase is aimed at Afghan and Ukrainian families, the temporary accommodation can also be used for general use.

The council has also indicated it expects the purchase of the property to produce a 16 per cent return on investment after borrowing costs.

As it stands, the proposal is an in-principle decision, as a property has not yet been identified, and has been sent to councillors, who will have a chance to speak their mind before its decision on September 20.