The UK has signed a £3.4 billion agreement to cede sovereignty over the Chagos Islands to Mauritius, after an 11th-hour legal challenge failed. The deal, which was finalized by Prime Minister Keir Starmer, allows Britain to lease the largest island, Diego Garcia, for 99 years to continue operating a joint US-UK military base.
Under the agreement, Britain will transfer control over the islands to Mauritius but retain the largest one, Diego Garcia, for £101 million per year. The total cost of the deal is estimated at £3.4 billion, with the value of payments decreasing due to inflation.
The UK government defends the deal’s high cost, stating it’s a necessary investment in Britain’s security and stability. Starmer argued that the cost is less than running one aircraft carrier for a year.
Critics, including Labour MPs, have questioned the deal, citing concerns over cuts to winter fuel payments and disability benefits, which contributed to heavy losses in recent local elections. The Chagossian community has mixed views on the deal, with some supporting it and others strongly opposing it.
The government maintains that there are “robust provisions” to protect against hostile states like China, including a 24-nautical mile buffer zone. Starmer criticized Reform UK leader Nigel Farage for attacking the deal, stating he was aligned with Russia, China, and Iran.
In response to criticism, Priti Patel, shadow foreign secretary, accused Starmer of “slandering” the Chagossian community. The government has also announced a £40 million trust fund for Mauritius to support the Chaggosian people.
The deal was almost derailed by a last-minute court challenge in the early hours of Thursday, but a judge later discharged the injunction, ruling that it would harm Britain’s reputation and interests.
Source: https://www.theguardian.com/world/2025/may/22/high-court-judge-blocks-uk-from-concluding-chagos-islands-deal