The deal, which would have transferred sovereignty of the Chagos Islands to Mauritius while leasing back the strategic Diego Garcia military base, has effectively stalled as the UK ran out of time to pass the required legislation before parliament was dissolved.
Officials clarified that the deal had not been abandoned entirely, but acknowledged that a key legal requirement – a formal exchange of letters with the United States – had not yet been completed, the BBC reported.
U.S. backs uncertainty to block legislation
The agreement, signed in May 2025, was initially backed by the United States. However, tensions escalated after Trump publicly criticized the plan, calling it a “complete act of weakness” and urging the UK not to “give up on Diego Garcia”.Despite earlier support from the US State Department, the UK was unable to proceed due to a lack of formal confirmation. A government spokesman stressed that the deal would only move forward with U.S. approval, adding that ensuring the long-term security of Diego Garcia remained “the whole reason for the deal.”The BBC quoted a government spokesman as saying: “The Diego Garcia is an important strategic military asset for the UK and the US. Ensuring its long-term operational security is, and will continue to be, our top priority – which is the whole reason for this agreement.”“We continue to believe this agreement is the best way to protect the long-term future of the base, but we have always said we will only proceed with it if we have U.S. support. We are continuing to engage with the United States and Mauritius,” the spokesman added. The proposed arrangement involves the UK paying around £101m a year to lease the base, a key British and US military asset in the Indian Ocean.
Strategic and political issues dominate debate
The Chagos Archipelago, which has been controlled by Britain since the early 19th century, has significant geopolitical importance due to the presence of the Diego Garcia base, which has supported major military operations including in Afghanistan and the Middle East.The agreement also aims to resolve a long-running sovereignty dispute over the islands, which Mauritius has claimed since independence. Critics, however, believe the move could weaken the region’s strategic position, especially amid increasing global competition.
Political backlash and criticism intensifies
The shelving of the deal sparked a strong political reaction. Conservative leader Kemie Badenock welcomed the move, saying the deal should be consigned to the “ash heap of history” and accusing Starmer of trying to “hand over sovereign British territory”.Likewise, UK Reform Party leader Nigel Farage called the suspension “long overdue” and urged the government to prioritize the resettlement rights of displaced Chagossians.Critics elsewhere, however, say the deal was handled inconsistently. Calum Miller, the Lib Dem foreign affairs spokesman, described the process as “utter chaos” and warned that Trump’s shift in stance exposed the fragility of the UK-US partnership.Meanwhile, many Chagossians oppose the deal, seeing it as a betrayal that does not guarantee their right to return to the archipelago after being displaced decades ago.With no Chagos-related legislation expected in the upcoming King’s Speech, the future of the deal remains uncertain as the UK remains in talks with the US and Mauritius.