UK Reviews Chagos Islands Deal After US Opposition
Defence Secretary Wes Streeting said the United Kingdom is reviewing its deal to hand the Chagos Islands to Mauritius. He confirmed the review after US President Donald Trump described the agreement as "terrible" at the UN General Assembly, the yearly meeting of world leaders, on Tuesday. BBC
Ministers said the original agreement would cede sovereignty, or legal control, of the islands to Mauritius. The UK would then lease back the joint UK-US military base for an average of £101m ($136m) a year. It is a bit like selling a house and renting it back to keep using it. Mr Streeting said Britain has to reconsider because Washington does not support the deal as currently drafted. He said Mr Trump's position is not changing. BBC
The deal was agreed under Sir Keir Starmer. Ministers said it was paused indefinitely in April after Mr Trump withdrew his support. That pause remains the formal position. The review will test whether revised terms can secure American backing.
Prime Minister Andy Burnham held his first face-to-face meeting with Mr Trump on Tuesday. Telegraph Mr Trump told Mr Burnham to look again at the agreement. He called it "terrible" and "ridiculous". Independent He also said he could do business with the prime minister. BBC Mr Burnham is now reviewing the deal after that exchange. Telegraph
Reuters said Mr Burnham had sought resolution of the dispute over the Diego Garcia base. Reuters That base is the operational core of the agreement. Its future determines the value of the sovereignty transfer and the leaseback.
Downing Street had previously held the line. GB News reported Mr Burnham had doubled down on the plan to transfer the islands despite Mr Trump's threats to block it. GB News Earlier in September, Mr Streeting said he is "committed" to the transfer. Times Those statements now stand as background to the review.
There is history here. Mauritius's prime minister asked for an independent review of the agreement in November 2024. The British government said at the time it was confident the deal would secure the future of the base. Reuters In March, a UK court refused permission for a legal challenge over the UK-Mauritius deal. Reuters
The broader context here is Whitehall's narrow room for manoeuvre. Sovereignty transfer plus long-term leaseback was designed to settle legal risk while preserving operations. Without US support, that balance fails. The base is joint. American objections carry operational weight, not only diplomatic weight.
Looking at what this means for ministers, cost and process will face parallel scrutiny. An average £101m annual payment invites sustained Treasury and parliamentary examination, particularly if terms are renegotiated. For No 10, the sequence matters. Pause in April, public commitment in early September, review in late September. It points to a government managing alliance pressure while keeping the Mauritius track alive, and leaving itself scope to present any revised draft as continuity rather than concession.
