Starmer: There is a cost to Chagos Islands deal
The cost of Keir Starmer’s surrender of the Chagos Islands has finally been revealed, sparking a huge row as the Prime Minister is accused of deliberately misleading Brits about the cost.
The Prime Minister finally signed away the crucial strategic island to Mauritus this afternoon, following a last-minute delay at the hands of the legal challenge.
Speaking this afternoon, Keir Starmer set out that the cost of the treaty is the equivalent of a new aircraft carrier, minus the aircraft.
He spelt out: “The cost of this is an average per year cost of £101 million.”
“The net overall cost is therefore £3.4 billion overall, that’s over the 99 years. That is, as I mentioned a moment ago, the average £100 million per year, is about the same or slightly less than the running cost of an aircraft carrier minus the aircraft.”
“Now, given the significance of this facility, both the geography and the capability, you can see, as measured against an aircraft carrier’s running cost, that this is very good value for money.
“I should also say that it’s very similar to arrangements made by other allies, the US and France, in relation to the basis they lease and make arrangements for as well.”
However it is now widely understood that the PM’s £3.4 billion claim is merely government accounting trickery, and the true cost is much higher.
The Tories have claimed the real figure is over £30 billion a year, when including inflation and all the other costs Britain is paying beyond the leasing of the Diego Garcia base.
The rent for the base alone is broken down as follows: £165 million a year for the first three years; £120 million a year for the next ten; then £120m plus inflation for years 14-99.
On top of that the UK has agreed to cough up £45 million a year for 25 years for development in Mauritius; and £40 million for a Chagossian trust fund.
Assuming an average of 2% inflation over the next 99 years, this sums to over £30 billion.
At a briefing this afternoon, the PM’s spokesman did not deny this figure.
Shadow Chancellor, Mel Stride said: “Labour have agreed to hand over British sovereign territory and the taxpayer is on the hook to the tune of billions of pounds for the privilege. This isn’t diplomacy – it’s daylight robbery.”
“That is money which could have gone on boosting our national defence or reducing our ever increasing national debt. When Labour said they would increase defence spending, they did not say they would do it by paying rent on our own land to foreign governments. Every time Labour negotiates, Britain loses.”
The Prime Minister insisted the UK had to hand the islands over due to international law, and the UK would have faced interim measures in legal proceedings had the government not complied.
This claim is heavily disputed by critics.
In a statement from the Ministry of Defence following the treaty’s signing, John Healey said: “As the world becomes more dangerous, our military base on Diego Garcia becomes more important. Today’s Treaty secures full operational control, strengthens our UK-US defence partnership and keeps British people safe at home for the next 99 years and beyond.”
“Without this base, our ability to deter terrorists, defend our interests and protect our troops around the world would be at risk. This agreement will safeguard our national and economic security for generations to come.”
Keir Starmer has revealed the cost of his new treaty with Mauritius (Image: Sky News)
The MoD insisted “The legal necessity of this deal has been recognised by successive governments.”
“The previous government started these negotiations over two years ago, and they held 11 out of the 13 rounds of talks that underpin the deal, that this government has concluded.
“Crucially, all Five Eyes partners – the US, Canada, Australia, and New Zealand – back the agreement, along with India, recognising the critical role Diego Garcia plays in upholding global stability and deterring adversaries.”
Former Defence Secretary Grant Shapps hit back, saying: “I received all the same briefings and this interpretation is simply inaccurate and completely spineless from this government.”
While the Conservative Government previously began exploratory talks with Mauritus, these were abandoned by Lord Cameron under Rishi Sunak’s premiership over concerns about China’s influence over the new owners of the Chagos Islands.