Home Office ministers and officials are scrambling to find different options to house asylum seekers as more councils – including at least two run by Labour – said they may also take legal action to block the use of hotels in their areas.

It comes as Labour’s asylum plans were thrown into disarray following a high court ruling granted to Epping District Council the power to temporarily close an asylum hotel.

Home Office sources said on Wednesday that they would not be pushed off course by the ruling and are ploughing ahead with plans to move asylum seekers into empty tower blocks and old student accommodation.

It comes as at least seven local authorities from across the country, including two Labour run councils, said they were considering launching similar legal action in a bid to

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