It is a moment our campaign has fought hard for. Downing Street has hit the brakes on its plan to surrender the Chagos Islands to Mauritius, with the project thrown into doubt after a furious row over its staggering price tag and the spectre of a backbench mutiny.
The agreement — reported to saddle Britain with more than £90 million a year for the next 99 years — had been lined up for signature once President Trump cleared the way by dropping Washington's objections earlier this year.
Yet The Times reports that No10 has now stalled, rattled by the prospect of a “toxic” revolt from MPs incensed at being whipped to back £5 billion in welfare cuts at home while billions flow abroad. As one senior source put it to the paper: “The deal is ready to go but Downing Street is refusing to give it the green light.”
A second insider was blunter still: “They know that they’re going to be attacked by the Tories and Reform for giving up sovereignty of the Chagos islands but it makes it much worse if they’re also being attacked from their own side.”
Negotiations to transfer the Indian Ocean archipelago had reportedly reached the “ready to sign” stage after US officials withdrew their opposition. But No10's political strategists have since pulled the handbrake, spooked by the timing.
The terms would see Britain give the islands to Mauritius while leasing back Diego Garcia — the remote military base used by both the UK and the US — for 99 years.
Standing in the way has been a determined coalition. Lord Kempsell and the Great British PAC, with the weight of a powerful cross-party bloc of MPs and peers behind them, have spearheaded the resistance, charging ministers with quietly signing away British sovereignty “in secret” and “at huge cost” to taxpayers. A petition run by The Conservative Post drew nearly 15,000 signatures against the deal.
A cross-party warning to Starmer and Lammy
In a scorching letter to Keir Starmer and David Lammy, the Great British PAC — backed by Rt Hon Liz Truss, Ben Habib, Nigel Farage MP, Suella Braverman KC MP, Rupert Lowe MP, Sir Jacob Rees-Mogg and other leading figures — issued a stark warning:
“Your government’s reported offer of £9 billion to Mauritius… is not in the interests of the British people.” “It would undermine our national interest, jeopardise our strategic alliances, and create unnecessary economic and security risks.”
The list of signatories also took in Baroness Hoey, Lord Hannan, Richard Tice MP, Sir Iain Duncan Smith, Jim Allister KC MP and Dame Andrea Jenkyns, who together pressed for full parliamentary scrutiny and sounded the alarm over China's expanding reach in the region.
Their letter did not mince words:
“This deal appears to have been negotiated in secret, bypassing not only meaningful consultation with Parliament but also with the Chagossian people themselves, who have historically suffered displacement and marginalisation. How can your government justify making decisions about their homeland without their voices being heard? “Your refusal to engage Parliament openly on this issue is deeply troubling. It is underhanded to push through such a significant and irreversible decision without proper scrutiny, especially given its ramifications for national security, public finances, and our relationship with the United States.”
The PAC set out clear demands: the deal must be fully debated and scrutinised in Parliament, the Chagossian community must be properly consulted, the terms must be aligned with our US allies to protect shared security interests, and a detailed, transparent breakdown of the costs and conditions must be published for public review.
The hidden bill — and a Labour benches in revolt
According to insiders, the final figure was being kept firmly under wraps, but the sums under discussion were in the region of £9 billion in total, denominated in dollars and tied to inflation — meaning the payments would climb year after year.
That price is anchored to what the US currently pays to rent its base in Djibouti, though Mauritian negotiators are said to have held out for more, insisting that Diego Garcia’s remote position makes it “more valuable”.
At the same time, Labour's own ranks are mutinous, with as many as 170 MPs signalling they could vote against or abstain on the welfare cuts.
Senior Foreign Office figures and national security adviser Jonathan Powell are reportedly still pushing to drag the deal across the line, while privately conceding that “everyone has overreacted to the local election results” and that nerves over anything controversial have set in. Another source told The Times: “I don’t think we’ll be hearing about Chagos for a while. They want to take the sting out of it.”
For now, Britain holds the line
A huge well done is owed to Lord Ross Kempsell, the Great British PAC and every campaigning group that stood up for Britain and forced a halt to this dodgy deal. Their relentless work has guarded taxpayers’ money, held firm on British sovereignty, and put ministers on notice that secretive, rushed sell-offs will not be waved through.
The battle may not be won outright — but for now, Britain holds the line.