Chagos deal to cost UK ‘10 times more than claimed’

WorldPolitics
11 Aug 2025 • 6:46 PM MYT
The Independent
The Independent

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  • A deal to transfer the Chagos Archipelago to Mauritius, while retaining control of the Diego Garcia military base, is projected to cost the UK £34.7 billion over 99 years.
  • Conservative Dame Priti Patel has accused ministers of attempting to "cover up" the true cost of the agreement, alleging an "accountancy trick" was used to present the figure as £3.4 billion.
  • The higher £34.7 billion figure, released by the Government Actuary’s Department, is a nominal amount, which, when adjusted for inflation, is estimated to be around £10 billion in today's money.
  • The government reportedly used a "social time preference" principle, in use since 2003, to reduce the figure by between 2.5 per cent and 3.5 per cent per year.
  • Dame Priti criticised Labour figures, including Foreign Secretary David Lammy and Prime Minister Sir Keir Starmer, for what she called a "terrible deal".

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