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UK to review Chagos Islands deal after Trump's latest criticism

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BBC News

September 23, 2026
UK to review Chagos Islands deal after Trump's latest criticism

The UK government is reviewing its Chagos Islands handover deal following sharp criticism from US President Donald Trump. Prime Minister Andy Burnham faces pressure to renegotiate the agreement, which Trump has publicly labeled as 'terrible'.

The Chagos Islands Diplomatic Impasse

The United Kingdom’s strategy regarding the Chagos Islands has reached a critical juncture following direct intervention from United States President Donald Trump. Defence Secretary Wes Streeting has officially confirmed that the government is reviewing the proposed sovereignty transfer to Mauritius. This development follows a period of heightened diplomatic friction, specifically triggered by President Trump’s characterization of the deal as "terrible" during a recent meeting at the UN General Assembly.

Strategic Importance and Financial Commitments

At the heart of this controversy is the joint UK-US military base located on the Chagos Islands, a facility deemed vital for regional security in the Indian Ocean. The original handover agreement, negotiated under the previous administration of Sir Keir Starmer, included a provision for the UK to pay an average of £101 million ($136 million) annually to lease back the base. This financial commitment, combined with the strategic necessity of maintaining a secure military presence, makes the deal a significant point of contention for the current administration.

Shifts in Leadership and Diplomatic Tone

The dynamic between London and Washington has shifted perceptibly with the rise of Prime Minister Andy Burnham. During their first face-to-face meeting in New York, President Trump expressed a preference for working with Burnham over his predecessor, labeling the new Prime Minister a "natural businessperson." Despite this personal rapport, the President remained steadfast in his opposition to the Chagos deal, which had already been paused indefinitely in April due to a withdrawal of American support.

The Necessity of Transatlantic Alignment

Defence Secretary Wes Streeting’s admission that the government "has to" review the deal due to the lack of United States support underscores the reality of the UK’s foreign policy constraints. Because the military base is a joint venture, the UK cannot effectively proceed with a sovereignty transfer that the US administration deems contrary to its interests. This highlights the delicate balancing act the UK must perform to maintain its "special relationship" with the US while navigating complex post-colonial obligations.

Broader Implications and Future Outlook

The tension surrounding the Chagos Islands is emblematic of broader challenges in UK-US relations, which have also been strained by differing stances on the regulation of artificial intelligence and the ongoing conflict in Iran. As Prime Minister Burnham, Foreign Secretary Ed Miliband, and National Security Adviser Jonathan Powell work to repair these ties, the Chagos issue serves as a litmus test for the administration's ability to reconcile domestic policy goals with the geopolitical requirements of their primary security partner. Moving forward, the government must decide whether to seek a renegotiated framework that satisfies US security concerns or risk a permanent rupture in the handover process.

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