Chagos Islands deal pulled by government after Trump brands it 'act of great stupidity'

The government's Chagos Island deal has been pulled after US President Donald Trump branded it an "act of great stupidity".

Under the terms of the agreement, Britain would cede sovereignty of the archipelago to Mauritius, but continue to lease the largest island, Diego Garcia - which hosts a joint US-UK military base.

Now the bill underpinning the deal has been pulled from the upcoming King's Speech, where the government's agenda for the coming parliament is revealed, it is understood.

The US president initially supported the agreement, but changed course in January and branded it "an act of great stupidity" during a dispute with his NATO allies over Greenland.

The British government stands by the deal and will attempt to persuade Mr Trump to change his mind but has acknowledged that it cannot proceed without his backing, The Times has reported.

A government spokesperson said: "Diego Garcia is a key strategic military asset for both the UK and the US.

"Ensuring its long-term operational security is and will continue to be our priority - it is the entire reason for the deal.

"We continue to believe the agreement is the best way to protect the long-term future of the base, but we have always said we would only proceed with the deal if it has US support.

"We are continuing to engage with the US and Mauritius."

It's a 'humiliating U-turn', says Badenoch

Conservative leader Kemi Badenoch has said Number 10's decision is "yet another humiliating U-turn for a government that just has no strategic direction".

Speaking to Sky News security and defence editor Deborah Haynes, Ms Badenoch said: "That deal should never have been on the table.

"Paying £35bn to give away territory we already own, at a time when so many people in this country are dealing with the cost of living, just shows that they were not in any way thinking clearly."

"This has also happened because Conservatives have been fighting every step of the way in the Commons, in the Lords, making it very difficult for them to pass this legislation," she continued.

"So I welcome the news. We've won. We've got a U-turn. We're really pleased."

Read more:
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Meanwhile, the Foreign Office's former top civil servant has defended the government, saying it had "no other choice" but to pause the deal.

Lord Simon McDonald, who served as the department's permanent secretary from 2015 to 2020, told the BBC: "The UK had two objectives, one was to comply with international law, the other was to reinforce the relationship with the United States.

"When the president of the United States is openly hostile, the government has to rethink, so this agreement, this treaty will go into the deep freeze for the time being."

It comes after Mr Trump repeatedly criticised Prime Minister Keir Starmer for his stance on the war in Iran.

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