CharlieH Posted 2 hours ago Posted 2 hours ago Sir Keir Starmer's Chagos Islands plan has sparked a storm, with official figures revealing a staggering cost far beyond initial claims. What's really at stake? Sir Keir Starmer's plan concerning the Chagos Islands faces intense scrutiny as new figures suggest the costs are drastically higher than initially stated. Documents released under the Freedom of Information Act indicate the true cost of handing over the British Indian Ocean Territory to Mauritius is nearly £35bn, far exceeding Starmer's public claim of £3.4bn. Labour ministers are accused of misleading Parliament and the public by using an "accountancy trick" to conceal the deal’s real expenses. This revelation coincides with Mauritius overtaking the UK in financial freedom rankings, adding to the controversy. Under Starmer’s proposal, the UK will relinquish the Chagos Islands by the year's end but maintain a lease on the strategic Diego Garcia military base, essential for UK and US military operations. The cost controversy emerged when the Government Actuary's Department initially estimated the expense at £34.7bn. This estimate was then ostensibly reduced using inflation assumptions and a debated accounting method sometimes applied to long-term projects. The disagreement over figures is significant. While Starmer claimed in May the total would be £3.4bn over 99 years, including inflation and discounts, Conservatives argued it would reach £30bn. The final figure, as calculated through the Treasury's Social Time Preference Rate, is 90% less than the payments' actual cash value over the next century. Dame Priti Patel, the shadow foreign secretary, accused Labour of using financial manipulation to downplay taxpayer costs. She emphasised the importance of transparency, criticising the apparent deception in presenting figures. Foreign Office sources defended the cost calculation method as standard for government spending on long-term projects. However, inconsistencies have emerged, as Labour’s other financial announcements don't utilize similar methods. For instance, Angela Rayner's affordable homes plan transparently includes inflation-adjusted costs as part of the spending. Parliamentary pressure mounts on Starmer’s government to provide clear financial details. The situation raises broader questions about fiscal transparency and accountability in political agreements. Critics insist on full disclosure to ensure taxpayers are not blindsided by hidden costs. As the debate unfolds, the Chagos Islands deal exemplifies the complex interplay between international diplomacy and domestic political pressures. Financial misrepresentations could undermine public trust and have significant political repercussions for Starmer’s leadership. The ongoing scrutiny further illustrates the challenges political figures face in navigating high-stakes international arrangements while ensuring accountability to their constituents at home. The outcome of this controversy could have lasting impacts on perceptions of integrity and effectiveness within the current administration. Adapted by ASEAN Now from The Express 2025-08-12
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