Armed Forces Minister Luke Pollard has defended the Government’s controversial Chagos Islands treaty, describing it as “good value for money” despite mounting criticism from the opposition and Conservative Party leader Kemi Badenoch, who claimed the deal left Donald Trump “laughing” at Britain’s expense.
The deal, struck by the Labour government as part of a wider move to “complete the process of decolonisation of Mauritius”, includes leasing back the strategic Diego Garcia military base in the Indian Ocean for 99 years, while handing over £1.125 billion for Mauritius’ economic development over 25 years.
In addition, the UK will pay an annual lease of at least £120 million, totalling around £13 billion in cash terms across the duration of the agreement. However, using net present value methodology, the Government says the figure sits closer to £3.4 billion — or around £101 million per year when adjusted to 2025/26 prices.
Speaking to Sky News, Mr Pollard defended the price tag, saying, “It’s £3.4 billion over 99 years – that represents good value.” He emphasised that the cost is “comparable” to those paid by other allies for similar bases in the region, adding that France currently pays €85 million annually to lease a military facility in Djibouti – a fraction of the size of Diego Garcia.
“Diego Garcia is 15 times bigger than that French base,” he said, noting the UK has also secured an “exclusion zone” around the island to protect military operations. He insisted that the deal guarantees British operational control and secures a 24-nautical mile buffer where no infrastructure can be built or deployed without UK consent.
Mr Pollard also pointed out that the US — which uses the base extensively — will bear “many multiples more” of the cost in operational expenses, as they continue to finance the running of the base. “What we are bringing to the deal is the real estate,” he told Times Radio. “The Americans pay for the operating costs – now that is many multiples more than the leasing cost.”
However, the arrangement has sparked fierce backlash, particularly from the Conservative Party. Tory leader Kemi Badenoch told BBC Breakfast that the United States had walked away with the lion’s share of the benefits.
“Donald Trump is laughing at that Chagos deal,” she said. “He’s welcoming it because he’s not going to have to pay very much, if anything at all. He’s got a great deal at the expense of the UK. That’s not right.”
Badenoch suggested the money could have been better spent addressing domestic priorities. “What I want to see is more nurses being paid well. But we can’t do that because we’re taking a lot of terrible decisions under Keir Starmer that are weakening our country.”
Despite the political furore, ministers have said the deal was necessary to avoid mounting legal pressure. The International Court of Justice ruled in 2019 that the Chagos Archipelago should be returned to Mauritius. According to Mr Pollard, failing to negotiate would have left the UK vulnerable to court action “within weeks” that could have threatened the base’s strategic operations.
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The Government argues that the agreement ensures long-term stability and British control over a key geopolitical asset. Diego Garcia plays a pivotal role in global security, particularly in UK and US military operations across the Indian Ocean and Middle East.
The treaty also outlines that the UK will retain authority over sensitive technologies on the island, including its electromagnetic spectrum satellite systems vital to communications and defence, shielding it from hostile interference.
While the true long-term costs remain subject to inflationary changes and strategic reassessments, Mr Pollard reiterated the government’s stance that the deal “protects British interests, respects international law, and ensures the continued security of a vital military asset”.
