The Labour Party is facing criticism for what is being described as a mishandling of its asylum agreement with Rwanda, which has led to the Rwandan government suing the UK for £100 million.

The East African nation issued an official statement condemning Prime Minister Sir Keir Starmer’s management of the situation, expressing dissatisfaction with how the matter was handled.

Rwanda disclosed that Labour only formally ended the asylum deal after legal action was initiated against the UK last November. Due to the delay, the agreement remains active and is scheduled to officially conclude on March 16.

As reported by the Daily Mail earlier this week, Rwanda has taken legal action by filing a claim with the Permanent Court of Arbitration located in the Netherlands.

In response to the situation, Shadow Home Secretary Chris Philp remarked, “This demonstrates yet another instance of catastrophic incompetence from this weak Labour Government.”

Shadow Home Secretary Chris Philp said: ‘This shows yet more catastrophic incompetence from this weak Labour Government.

‘They should urgently restore the deal and send illegal immigrants to Rwanda instead of to hotels up and down the UK.

‘But Home Secretary Shabana Mahmood is too weak to do that.

Home Secretary Shabana Mahmood has been accused of being too ‘weak’ to push ahead with the Rwanda deal

‘Instead, incompetent bungling is leading to court cases and a possible bill of £100million or more.’

He added: ‘It is quite clear the Labour Government has messed this up from start to finish, while illegal immigrants continue to flood across the Channel.’

The Rwandan government has blasted Sir Keir Starmer for announcing the end of the asylum deal in a manner ‘contrary to the spirit of the partnership’

One of Sir Keir’s first announcements after the general election was that he was ditching the Rwanda deal signed by the previous Conservative government, which is formally known as the Migration and Economic Development Partnership (MEDP).

The new official statement from the Rwandan government said: ‘In July 2024, shortly after taking office, the UK Prime Minister announced that the MEDP was “dead and buried”.

‘He did so without prior notice to Rwanda, contrary to the spirit of the partnership that had always characterised the MEDP.

Then home secretary Priti Patel agreed the asylum deal with Rwandan minister of foreign affairs Vincent Biruta in April 2022

‘In November 2024, the United Kingdom requested that Rwanda forgo two payments of £50 million that were due in April 2025 and April 2026 and said it was doing so in anticipation of the formal termination of the treaty.

‘Rwanda indicated it was prepared to accept these arrangements should the treaty be terminated, provided that new financial terms would be negotiated and agreed.

‘Discussions between Rwanda and the United Kingdom did not however ultimately take place and the amounts remain due and payable under the treaty.’

It went on to say the UK government had ‘made clear that it has no intention of making any further payment under the MEDP treaty’.

It continued: ‘Disappointingly, Rwanda’s attempts to move the UK from its entrenched position have been unsuccessful.

‘Shortly after filing its response to Rwanda’s notice of arbitration, the UK notified Rwanda of the termination of the treaty.

‘In accordance with the treaty’s terms, this termination takes effect on March 16 2026.’

The Rwandans said they would be making three claims in the arbitration court, based in The Hague.

Two claims relate to alleged breaches of financial arrangements and the third relates to an alleged breach of an agreement to ‘resettle vulnerable refugees from Rwanda’, which was part of the MEDP treaty.

The statement concluded: ‘Rwanda regrets that it has been necessary to pursue these claims in arbitration, but faced with the United Kingdom’s intransigence on these issues, it has been left with no other choice.’

The Rwanda scheme was just days away from finally removing Channel small boat migrants from the UK to Kigali when it was cancelled.

Migrants would have been housed there and offered the chance to claim asylum.

Labour’s decision to abandon the deal was followed by a massive surge in the number of migrants crossing by dinghy from northern France.

As a result, latest data from the Home Office shows 36,273 migrants were in full-board hotel accommodation – paid for by the taxpayer – at the end of September, up nearly 7,000 since Labour came to power.

The aborted scheme has already cost the UK taxpayer £715million, according to Home Office figures.

Migrants removed from the UK were to be accommodated in Hope Hostel, in Kigali, among other locations in Rwanda

Court papers named the Rwanda’s minister of justice and attorney general, Dr Emmanuel Ugirashebuja, as the ‘representative of the claimants’.

Rwanda has instructed Lord Verdirame KC, a crossbench peer, of London-based barristers’ chambers Twenty Essex.

The papers also named Dan Hobbs, the Home Office director for migration and borders, as a representative in the case.

The Home Office has instructed Ben Juratowitch of London-based Essex Court Chambers.

A Government spokesman said: ‘We will robustly fight this in the courts to protect British taxpayers.

‘The previous government’s Rwanda policy wasted vast sums of taxpayer time and money.’