Revealed: Chagos deal to cost 10 times what Starmer claimed

Yahoo

4 days ago

Sir Keir Starmer's Chagos Islands deal will cost 10 times more than he claimed, official figures reveal.
The Government's own estimate of the cost of giving away the British Indian Ocean Territory to Mauritius is almost £35bn, according to documents released under the Freedom of Information Act – far higher than the £3.4bn figure Sir Keir has previously used in public.
Labour ministers now face claims that they misled Parliament and the press with an 'accountancy trick' to hide the size of the bill from taxpayers.
Under the terms of Sir Keir's deal, the UK will give up the Chagos Islands by the end of this year and lease back the Diego Garcia military base, a facility built there in the 1970s that has been used by UK and US forces.
The cost of the agreement has been fiercely disputed. Sir Keir claimed in May that it would be £3.4bn over 99 years, accounting for inflation and other discounts, but the Conservatives said it would total £30bn.
An official document produced by the Government Actuary's Department shows the cost of the deal was first estimated at 10 times Sir Keir's figure, at £34.7bn, in nominal terms.
It explains how the cost was lowered by the Government using inflation estimates, then reduced again under a controversial accounting method sometimes used for long-term projects.
The total cost, which ministers refused to release to Parliament, is equivalent to 10 Queen Elizabeth-class aircraft carriers, or more than half the annual schools' budget.
Sir Keir now faces accusations that he misled Parliament, because he told MPs in February that cost estimates between £9bn and £18bn were 'absolutely wide of the mark' and suggested the true figure was lower.
The document shows that civil servants were first instructed to lower the cost of the deal on paper to £10bn, to account for an estimated annual inflation rate of 2.3 per cent over 99 years.
Then it was reduced again by between 2.5 and 3.5 per cent per year using the Treasury's Social Time Preference Rate, a principle that money spent immediately has more value than funds earmarked for future spending.
The final figure was calculated to be 90 per cent lower than the cash value of the payments the UK will make to Mauritius over the next century, in what critics say was a deliberate attempt to mislead the public.
Writing for The Telegraph (read the article below), Dame Priti Patel, the shadow foreign secretary, said: 'Instead of owning up to the costs, Labour have used an accountancy trick to claim the amount was only a mere £3.4bn.
'We've all known it's a terrible deal with huge costs to hard-pressed British taxpayers. But for months, ministers in public and Parliament have sought to cover up the true amounts.'
Foreign Office sources insisted ministers had used a 'standard' calculation for long-term government spending, and denied accusations that it was part of a 'cover-up'.
However, other projects announced by Labour have not used the same method, which has allowed ministers to advertise higher spending on popular policies. Angela Rayner has since launched a 10-year affordable homes plan that included inflation-level increases in government spending as part of the cost of the policy – a method not used with the Chagos deal.
The calculations behind the deal were revealed in response to a freedom of information (FOI) request submitted by the Conservatives.
MPs previously requested the document in Parliament but ministers refused to release it, in an apparent breach of government transparency rules. Darren Jones, a Treasury minister, said in June that it was 'not normal practice' for the Government to release 'corresponding financial analysis' alongside policy announcements.
Official guidance by the Cabinet Office says any information subject to FOI should also be released to MPs, while the ministerial code states that departments 'should be as open as possible with Parliament and the public'.
Dame Priti is expected to demand a correction and apology over the 'cover-up' from Sir Keir when MPs return from their summer break on Sept 1.
Kemi Badenoch, the Tory leader, said: 'It's bad enough that Starmer and Reeves' economic mismanagement has created a £50bn black hole in the public finances, prolonging the cost of living crisis.
'Now our research has uncovered the Government's own figures showing Labour's Chagos surrender is costing the country another £35bn. Add that to their £50bn black hole, and it's clear – when Labour negotiates, Britain loses.'
A government spokesman said: 'The Diego Garcia military base is essential to the security of the UK and our key allies, and to keeping British people safe.
'The average cost is £101m per year, and the net present value of payments is £3.4bn – this is less than 0.2 per cent of the annual defence budget.
'The deal is supported by our closest allies, including the US, Canada, Australia and Nato. The costs compare favourably with other international base agreements, and the UK-US base on Diego Garcia is larger, in a more strategic location and has unparalleled operational freedom.'
Starmer has been caught red-handed lying to the public
Keir Starmer and David Lammy have been caught red-handed lying to the British public over the costs of Labour's Chagos surrender deal, writes Dame Priti Patel.
This pair of diplomatic dunces have left Britain humiliated, weak, and the laughing stock of the international community.
We've all known it's a terrible deal with huge costs to hard-pressed British taxpayers. But for months, ministers in public and Parliament have sought to cover up the true amounts.
Even when the treaty was published and we could see the payments schedule, Labour tried to pull the wool over our eyes and deny the costs. When it was asked questions about the cash payments over the 99 years of the deal, it refused to answer.
And when reports suggested the cost of the deal could be from £9 billion to £18 billion, Starmer claimed this was 'absolutely wide of the mark' whilst the Foreign Office tried to claim it was 'entirely inaccurate and misleading'.
In fact, instead of owning up to the costs, Labour has used an accountancy trick to claim the amount was only £3.4bn – still a vast waste of money.
But now we know the costly truth, having dragged the figures out of Government, kicking and screaming, through a freedom of information request. It's an mind-blowing £35bn.
That's almost double the entire annual policing budget. Ten brand new aircraft carriers, 70 hospitals or a 5 per cent income tax cut. New prison places to lock up criminals, funding for social care, and millions upon millions of potholes could be fixed, with the £17bn local highways maintenance backlog covered twice ever. The list goes on.
Every single Labour minister is complicit in this cover-up. Instead of paying for front line services in Britain and reducing our tax burden, these payments have lead to Mauritius being able to pay down its debt, cut income tax and slash VAT.
Just think, as Rachel Reeves plots tax rises in the autumn to cover her catastrophic financial mismanagement, Labour is forcing you to pay for tax cuts in a foreign country.
Is it any wonder the Mauritian prime minister has been bragging about how he secured concession after concession from Labour?
From more money up front to the removal of a unilateral right to renew the proposed lease on Diego Garcia to the exercise of sovereign rights over the crucial military base, time and time again Britain backed down in negotiations.
It's not just Starmer and 'Calamity' Lammy who are to blame for this diplomatic humiliation.
Starmer's friend Lord Hermer, the Attorney General, and Jonathan Powell – Tony Blair's top advisor during the last Labour government's dodgy dossier scandal – have both been involved in these negotiations. They must be the worst team of negotiators in history.
And it gets worse. Labour has manipulated parliamentary process to deny the House of Commons a meaningful debate and vote. So frightened are they of democracy that they have wilfully misled Parliament and ignored long-standing parliamentary conventions on holding debates and votes on treaties.
The scale of the financial cost is bad enough, but Labour's Chagos surrender deal has profound and serious consequences for our national security and defence.
This isn't just about paying for the privilege of something we owned last month. This is a critical strategic asset. In a world that is becoming increasingly dangerous, giving away a military base to a friend of our enemies is a supreme act of self-harm.
Under the terms of the treaty, we need to disclose key information to Mauritius about the movements of UK, US and our allies' vessels and aircraft around Diego Garcia, and any military strikes we take from there.
This is deeply concerning as, in recent years, Mauritius has grown closer to our key strategic threats – China, Russia and Iran – forging new partnerships, including one with Russia just days before the treaty was signed in May. This means that sensitive information risks being handed over to a friend of our enemies.
Again, rather than facing up to the truth of what they are doing to our national interest, Labour ministers, including the Prime Minister himself, attempt to baselessly lie their way out of it.
Starmer has tried to claim China, Russia and Iran were against the deal and it was necessary for our national security.
That could not be further from the truth. China has welcomed the treaty since it was signed, while Iran and Russia have issued supportive statements towards Mauritius securing sovereignty over the Chagos Islands.
Senior Mauritian officials have also publicly thanked China and Putin for their support. Starmer and Lammy must think the British public are gullible to swallow their lies.
But we all know the truth. Labour has recklessly undermined our national security just because it wants to appease the whims and demands of its Left-wing lawyer and activist friends, and non-binding opinions issued by obscure international bodies few in Britain have heard of.
As a result of Labour's stupidity, lies and incompetence, British taxpayers face a huge £35bn cost, our national security and defence capabilities have been damaged, and it has undermined our standing in the world.
When Labour negotiates, Britain loses, and friend and foe alike have seen how feeble Labour is at negotiations over the Chagos Islands and will take advantage of us for years to come.
Today, it has become all the clearer why Labour's Chagos surrender deal must be ripped up and consigned to the rubbish bin of history – and that Starmer and Lammy are incapable of understanding, let alone defending, the British national interest.
Throughout this whole sorry saga, it is only the Conservative Party that has been fighting against Labour's Chagos surrender.
We've challenged the Government in Parliament and in the public to the point where ministers are complaining about the pressure we're putting them under.
And we'll keep on exposing Labour's lies and failures as we do all we can to oppose this deal, stand up for hard-pressed British taxpayers and fight for our national interests to be put first.
Dame Priti Patel is the shadow foreign secretary and Conservative MP for Witham
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