UK Defence Spending Under Scrutiny Amidst Chagos Islands Agreement, £101 Million Annual Lease Questioned

London, UK – The recent agreement between the United Kingdom and Mauritius concerning the Chagos Archipelago, which includes an annual payment of £101 million for the lease of the Diego Garcia military base, has ignited a fierce debate over the UK's defence spending priorities. James Cartlidge MP, a prominent Conservative figure, has accused the Labour government of "smoke & mirrors" on defence, suggesting that funds allocated for the Chagos deal are being prioritized over the needs of the armed forces.

In a tweet, James Cartlidge MP stated, "The @Telegraph has exposed the reality of Labour’s smoke & mirrors on defence spending - making billions available to surrender Diego Garcia, but forcing our own armed forces into huge cuts." This criticism highlights a growing concern among opposition parties regarding the financial implications of the Chagos agreement and its potential impact on the UK's military capabilities. The deal, signed on May 22, 2025, transfers sovereignty of the Chagos Islands to Mauritius while securing a 99-year lease for the strategically vital Diego Garcia base, with an option for extension.

The agreement stipulates that the UK will pay Mauritius £101 million annually for the lease, with the total projected cost over 99 years estimated by the government at a net present value of £3.4 billion, though some critics suggest a cash cost could reach £30 billion due to inflation. This financial commitment has drawn fire from the Conservative Party, which initiated the negotiations but ultimately opposed the terms under the new Labour government. Kemi Badenoch, Leader of the Opposition, described the agreement as a "surrender," arguing that the UK is "handing over British territory and paying upwards of £30bn to do so."

While Defence Secretary John Healey defended the agreement as "absolutely vital" for national security and intelligence, ensuring the continued operation of the base, critics like Cartlidge argue that such large sums should instead bolster the UK's armed forces. The debate extends to the perceived "huge cuts" facing the military, with the opposition suggesting that the Chagos deal exemplifies a misallocation of resources at a time when defence capabilities are under strain. The government maintains that the deal avoids costly international legal challenges and secures a crucial strategic asset, but the financial trade-offs remain a contentious point in the ongoing political discourse.