UK Delays Chagos Islands Agreement Amid Political Turmoil Over Welfare Cuts

[Social Media]

 

UK Delays Chagos Islands Agreement Amid Political Turmoil Over Welfare Cuts

 

Plans for the UK to transfer sovereignty of the Chagos Islands to Mauritius have been put on hold by Downing Street amid fears of political backlash, particularly from within Labour ranks, as the government simultaneously pushes for sweeping welfare reforms. The agreement, long in the works and reportedly “ready to sign,” was delayed due to mounting concerns about the timing and cost, which could inflame tensions already rising over a proposed £5 billion cut to the welfare budget.

 

 

According to senior government sources, the deal had progressed significantly after former US President Donald Trump removed American objections in February, clearing the path for Britain to return control of the archipelago to Mauritius. However, political advisers in No 10 argued that it would be “toxic” to finalise the deal while also asking MPs to support deep cuts to welfare spending.

 

“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,” said one insider. “The deal is ready to go but Downing Street is refusing to give it the green light.”

 

The financial settlement tied to the Chagos agreement is reported to be approximately £90 million a year for the next century. While ministers have not officially confirmed the cost, the figure is believed to be based on the $63 million annual rent paid by the US to Djibouti for Camp Lemonnier.

 

Mauritian negotiators argued that Diego Garcia—home to a major US military base and the largest island in the Chagos archipelago—is more valuable due to its remote strategic location, warranting significantly higher payments. These payments, to be made in US dollars and linked to inflation, would rise over the 99-year lease period during which the UK would retain access to Diego Garcia.

 

The political sensitivity surrounding the deal has been compounded by unrest among Labour backbenchers. A letter signed by more than 100 MPs was sent to the chief whip warning that they were “prepared not to support” the proposed welfare reforms. A separate public letter, signed by 42 MPs, mostly from the party’s left, further illustrated the growing resistance. Up to 50 additional MPs have reportedly raised private concerns, with some suggesting the reforms are simply a cost-cutting measure driven by fiscal targets set by Chancellor Rachel Reeves.

 

“I know my constituents will support [the cuts],” one Labour MP admitted. “But the harm this will do to the most vulnerable people in this country makes them completely intolerable.”

 

Despite this, Labour leader Sir Keir Starmer has remained firm in his stance, describing the need to overhaul the welfare system as “overwhelming.” Speaking on the rebellion, Starmer said: “To start from the fundamentals, the system as it is is not working. Therefore it needs to be reformed. It is not complying with the three principles I have set out many times: support those who need support; ensure that those who can get into work are supported into work; and that those who can work should work. That’s the approach I’ve taken so far, it’s the approach I’ll continue to take to this.”

 

When asked whether discontented backbenchers would simply have to “lump it,” Starmer responded, “We have to get on and reform this system, it’s not working for anybody and therefore we have to reform it.”

 

The legislation for the welfare changes is expected to be introduced in Parliament in mid-June, with the aim of securing passage before the summer recess. However, with the Chagos deal now politically entangled in the broader debate about austerity and national priorities, insiders say it may be some time before the issue resurfaces publicly. “I don’t think we’ll be hearing about Chagos for a while,” said one source. “They want to take the sting out of it.”

 

  Adapted by ASEAN Now from The Times  2025-05-17

 

 

 

 

[Thingamabob]

There was never a need to transfer sovereignty of the Chagos islands to Mauritius which is over a thousand miles distant. Why on earth the Tories started this is a mystery, now compounded by Labour apparently also in support of the transfer. Also, the cost of the terms is enormous at a time when the UK is bankrupt and heavily in debt.