The UK’s recent agreement to transfer sovereignty of the Chagos Islands to Mauritius has ignited a political firestorm, with the Conservative Party accusing Prime Minister Keir Starmer of indirectly funding tax cuts for Mauritians at the expense of British taxpayers.
Under the terms of the deal, the UK will pay Mauritius £90 million annually for the continued lease of Diego Garcia, a strategic military base, for the next 99 years. Mauritius has announced plans to utilize these funds to reduce its national debt and implement tax reforms, including raising the income tax threshold to £1,774 per year, effectively exempting 81% of the population from paying income tax.
Conservative MPs have expressed outrage, arguing that British taxpayers should not be subsidizing tax relief in a foreign nation while facing domestic economic challenges. Priti Patel, the shadow foreign secretary, criticized the deal, stating, “We have been warning from the start that this deal is bad for British taxpayers and bad for the Chagossian people.” She further accused the government of neglecting the Chagossian community, who were displaced from the islands decades ago and have long sought the right to return.
The United Nations Human Rights Council’s expert panel has also condemned the agreement, asserting that it violates the rights of the Chagossians by preventing their return to their ancestral lands and hindering their cultural rights.
In response, Prime Minister Starmer defended the deal, emphasizing its strategic importance for the UK’s defense posture and the long-term benefits it offers to both nations. He acknowledged the concerns raised by the Chagossian community and reiterated the government’s commitment to addressing their grievances through ongoing dialogue.
The controversy underscores the complex interplay between foreign policy, defense interests, and domestic economic priorities. As the UK navigates its post-Brexit identity, decisions like the Chagos Islands agreement will continue to provoke debate over the balance between national interests and international responsibilities.
