A city hotel will stop being used to house asylum seekers, the Home Office has confirmed.
Downing Street has terminated its contract with Holiday Inn Express in Hellesdon, next to the area's Asda supermarket.
The hotel - which was selected to house refugees in September 2022 - will stop being used before the end of April.
Norwich North MP Chloe Smith, who is standing down before the next election, once again took aim at her own government as she welcomed the news.
Ms Smith said: "Local residents have been concerned by the use of this hotel in north Norwich to house asylum seekers.
"We are a welcoming city to people in their hour of need, but this policy is not fair on anyone and I've constantly questioned the government over this.
"The return of these hotels is sensible for our local economy, constituents will also welcome less strain on local services."
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Charities have warned the policy U-turn could lead to some refugees sleeping rough.
Gee Cook, chief executive of Norwich-based New Routes Integration, previously said: "Just because the government is saying that it will reduce the number of asylum hotels that it is paying for does not mean that the same amount of people don’t need to be housed in an appropriate manner."
Last month, city council figures revealed an 86pc rise in the number of 'new refugees' - people who have recently been granted refugee or Humanitarian Protection status - presenting as homeless.
Charity Care4Calais blasted a recent change in policy from the Home Office which has seen the 28-day time limit for migrants to find support, housing or employment begin from the date of the decision to grant refugee status.
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Traditionally this 'move-on' period would start from when the person received their residence card.
The Home Office has confirmed those currently inside the hotels will be moved to other parts of the "asylum estate".
They will be notified a minimum of five days in advance.
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A Home Office spokesman said: “We are making significant progress with moving asylum seekers out of hotels, which cost UK taxpayers £8.2m a day.
“We have already exited the first 50 and we will exit more in the coming months.”
The Holiday Inn was selected alongside the Brook Hotel in Bowthorpe to temporarily house refugees, which is still in use.
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