Tory Accusations: PM & Chagos Islands Tax Deal

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Chagos Islands Sovereignty Transfer Sparks Debate Over UK-Mauritius deal

London, June 12, 2025 – A Controversial £3.4 Billion Deal To Transfer Sovereignty Of The Chagos Islands To Mauritius Continues To Draw Fire In The United Kingdom. Prime Minister Keir Starmer Is Defending The Agreement, Which Allows The Uk To Retain Control Of A uk-Us Military base On Diego Garcia, While Critics Allege It Is A Poor Use Of Taxpayer Money.

The Transfer Of The Chagos Islands Has ignited intense debate, raising questions about national security, economic implications, and the rights of the chagossian people.

Government Defends Strategic Importance

Sir Keir Starmer Addressed Parliament, Asserting That The deal Is Crucial For Maintaining The Uk’s Strategic Capabilities In The Indian Ocean. He Stated That Without This Agreement, The “Vital Intelligence And Strategic Capability” provided By The Diego Garcia Base Would Be Jeopardized.

He Highlighted Widespread Support From Allies Such As The Us, Nato, Australia, New zealand, And India, Contrasting this With Opposition From Adversaries like Russia, China, And Iran. starmer Also Criticized The Conservative Party’s Position, Accusing Them Of Echoing The views Of These Adversaries.

Opposition Condemns Financial Terms

Conservative Leader Kemi Badenoch Has Strongly Criticized The Financial Aspects of The Deal. during Prime Minister’s Questions, She Questioned Why British Taxpayers Should Fund Tax Cuts In Mauritius. Badenoch Insists The Deal Has “Nothing To Do With national Security” And Remains A “Bad Deal”.

The Agreement Stipulates That The Uk Will Lease The Diego Garcia base for 99 Years. Payments Include £165 Million Annually For The First three Years,Followed By £120 Million Per Year For The Subsequent Ten Years,With Later Payments Adjusted For Inflation. Starmer Claims This Averages To £101 Million Annually, A Figure Disputed By Conservatives.

Mauritius Plans Debt reduction And Tax Reform

Mauritian Prime Minister Navin Ramgoolam Announced that Revenue From The Chagos Deal Will Be Allocated to Debt Repayments. This is Part Of A Broader Budget Package Aimed At Reducing Mauritius’s Public Sector Debt To 60% Of Gdp In The Long Term. The Government Also Intends To Exempt 80% Of Workers From Income Tax, While Increasing Taxes For Higher Earners.

Chagossian Rights And International Concerns

A Panel Of Experts Appointed By The Un Human Rights Council Has Urged the Uk To Renegotiate The Chagos Deal, Arguing It “Fails To Guarantee” The Rights of The Chagossian People.The Panel Expressed “Grave Concerns” Over The Lack Of Meaningful Participation Of Chagossians In The Agreement’s Negotiation.

However, Philippe Sands Kc, Who Represented Mauritius In Its Legal Battle With The Uk, Disputed These Claims, Asserting That chagossians Were Indeed Involved In Various Processes. He Acknowledged Divisions Within The Chagossian Community But Stressed That Most Chagossians In Mauritius And Seychelles Support The Deal.

did You Know? The International Court Of Justice issued An Advisory Opinion in 2019 Stating That the Chagos Islands Should Be handed Over To Mauritius.

The Role Of Diego Garcia

The Core Of The Agreement Revolves Around The Uk’s Continued Use Of The Military Base On Diego Garcia. This Base Is Strategically Important for Both The Uk And The United States, Serving As A Key Hub For Military Operations In The Indian Ocean.

Philippe Sands Kc Emphasized That The “Quid Pro Quo” For Maintaining The Base Involved Allowing Chagossians To settle On The Outer Islands Of The Archipelago. He Added That The Deal Would “Enhance Britain’s Position In the World” By Demonstrating Respect For “The Rule Of Law”.

Conflicting accounts On Negotiation origins

While Philippe Sands Kc Credited Liz Truss With Initiating Negotiations During Her Brief Tenure As Prime Minister, Liz Truss Herself Disputes This, Claiming That Boris Johnson Started The Process During his Premiership. This Disagreement Highlights The Contentious Nature Of The Deal And The Complex Political Dynamics Surrounding It.

Key Figures In the Chagos Islands Deal

Figure	role	Position On The Deal
Sir Keir Starmer	uk Prime Minister	Defends The Deal as Crucial For National Security
Kemi badenoch	Conservative Leader	Criticizes The Deal’s Financial Terms
Navin Ramgoolam	Mauritian Prime minister	Plans To Use Revenue For Debt Reduction
Philippe Sands Kc	Legal Representative For Mauritius	Asserts Chagossian Involvement In Negotiations

What are the long-term implications of this deal for the Chagossian community? How might this agreement affect international perceptions of the UK’s commitment to human rights and decolonization?

Historical Context Of The Chagos Islands Dispute

The Chagos Islands have Been A point Of Contention for decades. In The 1960S, The Uk Detached The Archipelago From mauritius, Then A British Colony, Prior To Granting Mauritius Independence. The Indigenous Population, The Chagossians, Were Forcibly Removed To Facilitate The Establishment Of A Us Military Base On Diego Garcia. This Eviction Remains A Deeply Sensitive Issue, With Many Chagossians Seeking The Right To Return To Their Homeland.

The Uk’s Actions Have Faced Widespread International criticism, With Resolutions Passed By The United Nations Calling For The Islands To Be Returned To Mauritius. The Current Deal Represents An Attempt To Resolve This long-Standing Dispute, But Concerns Persist Regarding The Rights And Welfare Of The Chagossian People.

Pro Tip: Research The “Chagos Marine Protected Area” Controversy To Understand The Environmental Dimensions Of The Dispute.

Frequently Asked Questions About The chagos Islands Deal