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During prime minister’s questions, Conservative leader Kemi Badenoch criticized the UK’s £3.4bn deal transferring sovereignty of the Chagos Islands to Mauritius while maintaining control of a UK-US military base on Diego Garcia, calling it a “terrible” agreement. She questioned why British taxpayers should fund tax cuts in Mauritius. Mauritian prime minister Navin Ramgoolam revealed that the funds from the Chagos deal would aid in debt repayments, allowing 80% of workers to be exempt from income tax.
Sir Keir Starmer defended the deal, emphasizing the importance of preserving the “vital intelligence and strategic capability” on Diego Garcia. He stressed the risk of jeopardizing the base without a deal, stating that legal uncertainty would compromise it quickly. According to Sir Keir, the agreement secures the base for the long term, receiving support from allies such as the US, Nato, Australia, New Zealand, and India, while being opposed by adversaries like Russia, China, Iran, and others.
The negotiation to transfer sovereignty of the Chagos Islands began under the previous Conservative government, with Labour agreeing to lease the Diago Garcia base for 99 years. The UK will pay £165m annually for the first three years, followed by £120m from years four to 13, with subsequent payments indexed to inflation. Navin Ramgoolam’s Budget aims to reduce Mauritius’s public sector debt to 60% of GDP in the long term using revenue from Chagos for debt repayment in the initial three years.
Experts have advised the UK to renegotiate the Chagos deal due to concerns that it fails to ensure the rights of the Chagossian people. Philippe Sands KC dismissed claims that Chagossians were not involved in the processes, acknowledging the community’s division. He explained that Chagossians would be permitted to settle on the outer islands as part of the agreement, acknowledging the bitterness and hurt experienced by the community in the UK. Sands highlighted the support for the deal from Mauritius and Seychelles, emphasizing that it will bolster Britain’s image as a country upholding the rule of law
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