In a historic and controversial move, UK Prime Minister Sir Keir Starmer has announced the formal handover of the Chagos Islands to Mauritius. The decision, confirmed in May 2025, not only cedes British sovereignty over the long-disputed territory but also comes with a hefty price tag: £101 million annually from UK taxpayers. The move ends decades of legal wrangling and diplomatic tensions but has sparked outrage among political opponents and concerns from the displaced Chagossian community.
The Chagos Islands, a British Overseas Territory in the Indian Ocean, have long been at the center of international dispute, colonial reckoning, and military geopolitics. This deal represents a dramatic shift in UK foreign policy and opens new debates about sovereignty, strategy, and historical justice.
What the Deal Involves
Under the terms of the agreement signed by the UK and Mauritius, sovereignty of the Chagos Archipelago will officially be transferred to Mauritius. However, the crown jewel of the islands—Diego Garcia—will remain under UK administration for 99 years under a lease arrangement that allows the UK and the United States to continue operating a joint military base.
In exchange for this continued access, the UK has agreed to pay Mauritius £101 million each year, totaling over £3.4 billion over the life of the lease. The payments are intended to support infrastructure and development in Mauritius and possibly fund resettlement initiatives.
A 24-mile nautical buffer zone has been established around Diego Garcia to prevent any foreign military presence, with specific intentions to limit influence from adversaries like China.
The £101 Million Question: What Are Taxpayers Paying For?
For many UK citizens, the central question is clear: why is Britain paying over £100 million a year for land it once governed? The government argues that the cost secures long-term military access to Diego Garcia—a strategic outpost essential for operations across the Indo-Pacific and the Middle East.
However, critics contend that the UK is effectively paying to give up its territory while still bearing the burden of its defense. The payment has been labeled a “surrender tax” by some MPs, who see it as an expensive capitulation to international legal pressure and foreign policy idealism.
Still, government officials claim the deal is cost-effective when measured against the geopolitical leverage Diego Garcia provides, particularly in maintaining the UK’s influence in the Indian Ocean.
The History of the Chagos Islands Dispute
The roots of this controversy run deep. The Chagos Archipelago was part of Mauritius until the 1960s when Britain separated it to form the British Indian Ocean Territory. In the late 1960s and early 1970s, over 1,500 Chagossians were forcibly removed from the islands to make way for the military base, a decision that has been widely condemned as a grave injustice.
Chagossians have since fought for the right to return, with mixed success in British and international courts. Mauritius has consistently challenged the UK’s sovereignty, culminating in a 2019 International Court of Justice (ICJ) ruling that the UK should end its administration of the islands.
Starmer’s Decision: Political Context and Fallout
Prime Minister Starmer’s decision is being framed by supporters as a bold step toward reconciling with Britain’s colonial past and complying with international law. But the backlash has been fierce.
Conservative figures such as Robert Jenrick and Kemi Badenoch have accused the Prime Minister of “surrendering” British territory. Nigel Farage went even further, calling it “treasonous” and a betrayal of national interest. Meanwhile, questions are being raised about the absence of a public referendum or parliamentary vote on the matter.
The opposition argues that the decision lacks democratic legitimacy and could weaken Britain’s hand in future territorial disputes.
