Latest news with #GovernmentActuary
The Independent
a day ago
- Business
- The Independent
Chagos deal to cost UK ‘10 times more than claimed'
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".
The Independent
a day ago
- Business
- The Independent
Chagos Islands deal will see Mauritius ‘receive £35bn over 99 years'
A deal to keep the UK-US military base running in the Chagos Archipelago is projected to see £34.7 billion handed to Mauritius over the next 99 years. Conservative shadow foreign secretary Dame Priti Patel has accused ministers of trying to "cover up" the cost of ceding the Chagos Islands to Mauritius, alleging an "accountancy trick" was used to price the deal at £3.4 billion. The higher £34.7 billion figure, released after a freedom of information request to the Government Actuary's Department, is a nominal amount. Adjusted for inflation, the deal is worth an average £101 million annually in 2025/26 terms, reducing its value to around £10 billion in today's money. The UK Government has agreed to cede the Chagos Archipelago to Mauritius but retain control of the military base on Diego Garcia. Ministers feared that without a deal, the base's future was in doubt amid challenges in international courts and tribunals. 'We've all known it's a terrible deal with huge costs to hard-pressed British taxpayers,' Dame Priti wrote in The Telegraph, which first reported the figures. 'But for months, ministers in public and Parliament have sought to cover up the true amounts.' Dame Priti also warned that 'instead of owning up to the costs, Labour has used an accountancy trick to claim the amount was only £3.4 billion – still a vast waste of money'. She described the £35 billion figure as 'mind-blowing', and labelled Foreign Secretary David Lammy as ''Calamity' Lammy'. Dame Priti accused him, Prime Minister Sir Keir Starmer, Attorney General Lord Hermer and special envoy for the negotiations Jonathan Powell of being 'the worst team of negotiators in history'. The figures, seen by the PA news agency, show that the Government used a Treasury principle to reduce the figure by between 2.5% and 3.5% per year to £3.4 billion. This 'social time preference', used since 2003, is based on the idea that taxpayers would prefer to get their return on the deal sooner rather than later.
Yahoo
a day ago
- Business
- Yahoo
Mauritius ‘to receive £35bn' for Chagos deal over 99 years
A deal to keep the UK-US military base running in the Chagos Archipelago is projected to see £34.7 billion handed to Mauritius over the next 99 years. Conservative shadow foreign secretary Dame Priti Patel accused ministers of trying to 'cover up' the cost of ceding the Chagos Islands to Mauritius, accusing them of using an 'accountancy trick' to price the deal at £3.4 billion. The higher figure, released after a freedom of information request to the Government Actuary's Department, is a nominal amount. Adjusted to account for inflation, the deal is thought to be worth an average £101 million a year in 2025/26 terms, lowering the value to around £10 billion in today's money. The UK Government has agreed to cede the Chagos Archipelago to Mauritius but retain control of the military base on Diego Garcia. Ministers feared that without a deal, the base's future was in doubt amid challenges in international courts and tribunals. 'We've all known it's a terrible deal with huge costs to hard-pressed British taxpayers,' Dame Priti wrote in The Telegraph, which first reported the figures. 'But for months, ministers in public and Parliament have sought to cover up the true amounts.' Dame Priti also warned that 'instead of owning up to the costs, Labour has used an accountancy trick to claim the amount was only £3.4 billion – still a vast waste of money'. She described the £35 billion figure as 'mind-blowing', and labelled Foreign Secretary David Lammy as ''Calamity' Lammy'. Dame Priti accused him, Prime Minister Sir Keir Starmer, Attorney General Lord Hermer and special envoy for the negotiations Jonathan Powell of being 'the worst team of negotiators in history'. The figures, seen by the PA news agency, show that the Government used a Treasury principle to reduce the figure by between 2.5% and 3.5% per year to £3.4 billion. This 'social time preference', used since 2003, is based on the idea that taxpayers would prefer to get their return on the deal sooner rather than later.
The Independent
a day ago
- Business
- The Independent
Mauritius ‘to receive £35bn' for Chagos deal over 99 years
A deal to keep the UK-US military base running in the Chagos Archipelago is projected to see £34.7 billion handed to Mauritius over the next 99 years. Conservative shadow foreign secretary Dame Priti Patel accused ministers of trying to 'cover up' the cost of ceding the Chagos Islands to Mauritius, accusing them of using an 'accountancy trick' to price the deal at £3.4 billion. The higher figure, released after a freedom of information request to the Government Actuary's Department, is a nominal amount. Adjusted to account for inflation, the deal is thought to be worth an average £101 million a year in 2025/26 terms, lowering the value to around £10 billion in today's money. The UK Government has agreed to cede the Chagos Archipelago to Mauritius but retain control of the military base on Diego Garcia. Ministers feared that without a deal, the base's future was in doubt amid challenges in international courts and tribunals. 'We've all known it's a terrible deal with huge costs to hard-pressed British taxpayers,' Dame Priti wrote in The Telegraph, which first reported the figures. 'But for months, ministers in public and Parliament have sought to cover up the true amounts.' Dame Priti also warned that 'instead of owning up to the costs, Labour has used an accountancy trick to claim the amount was only £3.4 billion – still a vast waste of money'. She described the £35 billion figure as 'mind-blowing', and labelled Foreign Secretary David Lammy as ''Calamity' Lammy'. Dame Priti accused him, Prime Minister Sir Keir Starmer, Attorney General Lord Hermer and special envoy for the negotiations Jonathan Powell of being 'the worst team of negotiators in history'. The figures, seen by the PA news agency, show that the Government used a Treasury principle to reduce the figure by between 2.5% and 3.5% per year to £3.4 billion. This 'social time preference', used since 2003, is based on the idea that taxpayers would prefer to get their return on the deal sooner rather than later.
