The Home Office has made the decision to end plans to house asylum seekers at RAF Scampton, the former Ministry of Defence site in Lincolnshire.
Opening the site from this autumn as planned would have cost a total of £122 million by the end of its use in 2027, meaning the site no longer represents value for money.
A total of £60 million has already been spent on the site.
Work to close the site will begin immediately with the sale happening in line with the process for disposing of Crown land.
Progress is already being made to clear the backlog of asylum cases, which will save around £7.7 billion in asylum costs over the next decade.
The Minister for Border Security and Asylum, Dame Angela Eagle MP said:
Faster asylum processing, increased returns and tighter enforcement of immigration rules will reduce demand for accommodation like Scampton and save millions for the taxpayer as we drive forward work to clear the asylum backlog and strengthen our border security.
We have also listened to community feedback and concerns about using this site for asylum accommodation.
