A £3.4bn agreement transferring sovereignty of the Chagos Islands to Mauritius has ignited fierce debate in Westminster. UK-Mauritius Chagos deal sparks political storm as Conservatives accuse Prime Minister Keir Starmer of effectively funding tax cuts abroad. They claim this is happening while maintaining a critical UK-US military base on Diego Garcia.
Under the agreement, Mauritius gains sovereignty over the archipelago. However, Britain retains control of Diego Garcia under a 99-year lease. The UK will pay £165m annually for three years. Afterwards, they will pay £120m for the next decade, with subsequent payments pegged to inflation.
At Prime Minister’s Questions, Tory leader Kemi Badenoch slammed the arrangement as “terrible.” She questioned why British taxpayers should subsidize Mauritian debt relief and income tax cuts. Mauritian PM Navin Ramgoolam confirmed the funds would help achieve his goal. Specifically, it would exempt 80% of workers from income tax.
Sir Keir defended the deal as essential for preserving Diego Garcia’s “vital intelligence and strategic capability.” He warned that legal disputes threatened the base’s future. Furthermore, he added that NATO allies supported the agreement. Meanwhile, adversaries like China and Russia opposed it.
However, Badenoch countered that security briefings showed no national security justification for the payments. Reform UK joined critics, with Nigel Farage calling it “another betrayal of British interests.”
The agreement has split the Chagossian community, forcibly removed from the islands in the 1960s–70s. A UN panel criticized their exclusion from negotiations, though lawyer Philippe Sands KC—who represented Mauritius—insisted many were consulted.
Sands acknowledged the pain of UK-based Chagossians barred from returning to Diego Garcia. However, he emphasized most in Mauritius and Seychelles backed the deal. He revealed he became a Mauritian citizen in 2020 to argue their case. Although he declined to disclose his fees.
The deal’s origins are disputed: Sands credited Liz Truss for initiating talks, while Truss blamed Boris Johnson. Starmer framed the agreement as upholding international law, citing a 2019 ICJ ruling favoring Mauritius.
Yet with Mauritius earmarking UK payments for debt relief, UK-Mauritius Chagos deal sparks political storm over whether Britain prioritized diplomacy over fiscal prudence. As Badenoch vowed to scrutinize the “bad deal,” the controversy underscores tensions between post-Brexit sovereignty. It also highlights issues related to global commitments.
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