The High Court has ruled the government's plan to house asylum seekers in Folkestone's Napier Barracks for another five years is unlawful.
The Home Secretary Priti Patel granted herself an extension to house refugees at the site, which has fallen into a state of disrepair, but on Friday was told this would be a breach of the Equality Act.
This is the second time Ms Patel's plans for the barracks, which sleeps up to 14 per dorm, have been called unlawful.
In June last year, transfers there were temporarily halted after the High Court ruled the selection process was also unlawful.
Earlier this year in March she also lost a High Court challenge brought by three asylum seekers after she admitted their phones were seized under a blanket policy targeting those crossing the Channel.
The government first started using Napier Barracks in September 2020 after they were loaned from the Ministry of Defence to help deal with an influx of people arriving in the UK to seek asylum.
The government used emergency planning laws to use Napier for 12 months.
When that expired, Ms Patel then secured use of the base until 2026 via a Special Development Order – which overrides local planning laws.
But Mrs Justice Lieven said extending the scheme could lead to potential victimisation and harassment while causing tensions with the local community, according to a report in The Mirror.
The government is now required to make a new submission that satisfies the Equality Act.
Campaigners who crowdfunded £40,000 to pay for the court challenge against Ms Patel hailed the ruling a victory.
Ms Patel faces another High Court challenge next month as her plans to send asylum seekers to Rwanda will be heard by a judge.
From the first day the military barracks were used by the government, the site has been plagued with issues.
Officers were called just 24 hours after asylum seekers moved into the camp following reports a drone was being flown overhead.
A group of people gathered outside the gates appearing to confront the people who moved in.
A fire which, is believed to have been started deliberately, tore through the facility in January last year.
No serious injuries were reported but a significant amount of damage was caused to one part of the site following the blaze.
Protests, including one where fake blood was thrown at the gates, hunger strikes and a Covid-19 outbreak also resulted in increased tension.