Andy Burnham could face a right-wing council rebellion if he ploughs ahead with his migrant housing plan which would see all areas of Britain "play their part".
Reform UK has said it would resist efforts by the Prime Minister to distribute asylum seekers throughout the country by launching legal challenges.
And the Conservatives have confirmed they are "considering all options" to prevent asylum seekers from being moved to Tory-run local authorities,
On Tuesday, Mr Burnham told GB News the "poorest communities" had already done enough, with Downing Street sources arguing it was a "point of principle" to send migrants to more expensive postcodes.
A spokesman for Reform UK said: "Andy Burnham's plan to dump illegal migrants in more expensive areas is an insult to taxpayers and councils being forced to pick up the bill, while putting local communities at risk.
"Reform-run councils will resist Labour forcing illegal migrants on their communities, including via judicial reviews, HMO [houses in multiple occupation] directions and planning laws.
"Reform will not stand by while Andy Burnham and the Left impose their failed immigration policies on councils and taxpayers who never voted for these policies."
HMO directions allow councils to block the conversion of single houses into multiple-occupation dwellings without planning permission.
Family homes can usually be converted to accommodate up to six people without the need for permission.
Reform and the Tories collectively run more than 86 councils, and both parties have pledged to resist illegal migrants being moved into their areas.
Kemi Badenoch vowed to back any Tory-run councils challenging an asylum hotel in its area.
Matt Vickers, the deputy chairman of the Conservative Party, told The Telegraph: "Labour have failed to stop the boats and now they want to spread the illegal migration problem across the country so all communities can suffer - even though it will cost the taxpayer even more than the current failed arrangement.
BRITAIN 'PLAYS ITS PART' - READ MORE:
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- MAPPED: The areas that could be forced to 'play their part' after Labour shuts 13 migrant hotels
- Andy Burnham 'doesn't have the guts to deal with small boats crisis', says Nigel Farage
"Meanwhile they are closing asylum hotels only to force migrants into local communities, taking up HMOs and further reducing the housing supply available to hard-working Britons.
"The Conservatives are considering all options to help councils resist their areas being forced to take on asylum seekers. Rather than simply moving people around in an attempt to punish Middle England, Burnham should focus on stopping the crossings."
Lewis Cocking, the Tory MP for Broxbourne - which houses no asylum seekers - said it was not "fair on any community in any part of the United Kingdom to be forced to accommodate people who have come to this country illegally".
"The Government should be focused on stopping illegal immigration entirely rather than thinking about which areas haven’t taken enough," he said.
"If someone arrives in this country illegally, they should be detained and deported."
Some 13 asylum hotels were closed on Wednesday with the aim of closing all of the sites by the end of this Parliament.
But moving migrants into rented accommodation is likely to cost taxpayers more money - as much as 17 per cent, according to analysis by The Telegraph.
A Government spokesman said: "We are closing every asylum hotel and moving asylum seekers into basic accommodation.
"The number of asylum seekers receiving support is decreasing, and the number of asylum seekers in hotels has fallen by 35 per cent in the last year – and by 63 per cent from the peak in 2023.
"Overall asylum costs have already fallen by £1billion since the general election. We are working to fairly house asylum seekers across the country, working closely with local authorities, and listening to local concerns to reduce the impact on communities."
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