The May 2025 agreement transfers sovereignty of the British Indian Ocean Territory to Mauritius while keeping UK operational control of the Diego Garcia military base through a long-term leaseback. Ministers estimate the nominal settlement cost could reach about £35bn when long-term payments are included. The UK will make average annual payments of around £101m and provide cooperation on security, climate change, maritime enforcement, and development initiatives. New disclosures reported by critics suggest the Foreign, Commonwealth and Development Office has also been developing additional support programmes for Mauritius, including economic growth initiatives, maritime security assistance, and renewable energy projects. Critics argue these commitments could increase pressure on public finances amid high inflation and energy costs, and they cite a £12m climate finance scheme as part of the package.
"The agreement, signed in May 2025, transfers sovereignty of the British Indian Ocean Territory to Mauritius while allowing the UK to retain operational control of the strategic military base at Diego Garcia under a long-term leaseback arrangement. Ministers have estimated the total nominal cost of the settlement could reach as much as £35bn when long-term payments are taken into account. Under the terms of the deal, the UK will make average annual payments of around £101m to Mauritius, alongside commitments to cooperation on security, climate change, maritime enforcement and wider development initiatives."
"But new research highlighted by the Taxpayers' Alliance claims the Foreign, Commonwealth and Development Office (FCDO) has also been developing additional support programmes for Mauritius, including economic growth initiatives, maritime security assistance and renewable energy projects. The Taxpayer's Alliance said: "Hard-pressed British taxpayers will be bewildered to find out they are picking up the tab for projects in Mauritius." "Surrendering the Chagos Islands was bad enough, but expecting UK families to fund maritime security and climate programs there too is rubbing salt into the wound.""
"These reportedly include access to a £12m climate finance scheme, which campaigners say could help unlock further hundreds of millions in green investment. Critics argue the cumulative package risks placing further strain on already stretched public finances at a time when households face high inflation and elevated energy costs. The row has intensified political scrutiny of the agreement, with opponents p"
#chagos-islands #uk-mauritius-relations #foreign-aid-and-climate-finance #diego-garcia-military-base #public-finances-and-taxation
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