Ipswich Borough Council has bypassed normal contract procedures to spend £88,810 on emergency hotel accommodation for homeless people.
The Labour led authority has decided to waive the market testing requirement of Contract Standing Orders because of the urgency of rising homelessness in the town and the lack of alternative accommodation.
According to the council under section 188 of the 1996 Housing Act 1996 it has a statutory duty to provide accommodation for some groups of homeless people.
They argue that a "limited supply of suitable accommodation" coupled with "high demand" and a lock of alternative providers has led to the decision.
As a result, a contract with Cameron Ventures at Ipswich Best Western Hotel in Copdock will be extended until 31st March 2025 which will cost taxpayers £88,810.
It follows two previous 12-week contracts at the hotel which was previously used to house asylum seekers.
The council have said that if they went through the usual "competitive tendering process" if would likely mean they would be unable to fulfil their statutory duty.
According to analysis published by Ipswich Labour Party last year Ipswich has one of the highest number of homeless accommodation applications per head of the population in England.
At the time there was at least 100 people in temporary accommodation in the town.
Figures from the Department for Levelling Up, Housing and Communities last year showed that 2.97 out of every 1,000 households in Ipswich were at risk of homelessness more than double the national average of 1.33.
Councillor Alasdair Ross, Ipswich Borough Council's portfolio holder for housing said; "Homelessness is a serious issue because of the cost-of-living crisis."
Mr Ross added that the council was looking for "long term solutions" and was "always looking for new accommodation" to house homeless people.
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