London, United Kingdom (Agencies) August 13, 2025 — The British government is facing mounting criticism after revelations that the true cost of its agreement to lease back the Diego Garcia military base from Mauritius may exceed $47 billion, nearly ten times the officially stated figure of $4.6 billion, according to documents cited by The Telegraph.
The deal, signed in May by Prime Minister Keir Starmer, marked the formal transfer of sovereignty over the Chagos Islands to Mauritius, ending decades of colonial administration. However, the agreement allows the UK and the United States to retain control of the strategically vital Diego Garcia base for a 99-year period.
While the government initially claimed the leaseback would cost £3.4 billion ($4.6 billion), documents from the Government Actuary’s Department reveal the actual payments will total nearly £35 billion ($47.1 billion) over the duration of the lease. Critics have accused ministers of using controversial accounting methods—such as inflation adjustments and long-term discounting—to obscure the real financial burden.
Prime Minister Starmer previously dismissed higher estimates of £9 billion and £18 billion as “absolutely wide of the mark,” but the newly surfaced figures suggest otherwise. Conservative lawmakers have labeled the accounting approach “statistical jiggery-pokery,” alleging deliberate efforts to mislead Parliament and the public.
The Diego Garcia base, built in the 1970s and jointly operated by the UK and US, is considered one of the most valuable military assets in the Indian Ocean. A government spokesperson defended the deal, calling the base “essential to the security of the UK and our key allies, and to keeping British people safe.”
Mauritian Prime Minister Navin Ramgoolam hailed the agreement as a historic milestone in completing the decolonization process, though the financial terms have sparked debate over transparency and strategic value.
The controversy has reignited scrutiny over Britain’s defense spending and its geopolitical commitments, with MPs questioning whether the deal aligns with NATO budget metrics and long-term national interests