Mauritius is considering legal action against Britain after a high-profile Chagos Islands agreement collapsed, leaving a £160 million hole in the island nation’s budget. The deal, which would have seen Britain pay Mauritius £3.4 billion over 100 years in exchange for continued use of the strategic military base on Diego Garcia, was paused after former U.S. President Donald Trump withdrew support amid a dispute over British restrictions on U.S. use of the bases to launch strikes on Iran. Trump has publicly criticised Prime Minister Sir Keir Starmer, calling the lease “tenuous, at best” and accusing the UK of failing to assert control over the islands.
Mauritian Prime Minister Navin Ramgoolam told local media that his government is consulting lawyers to explore legal avenues in the Chagos case. “We are exploring all possible avenues, but clearly the 2026-27 budget will not be an easy one,” he said, noting the shortfall threatens public spending and national priorities. Whitehall sources warned that Trump’s withdrawal could create “a world of legal pain” for the UK, although Foreign Office officials maintain that a legal challenge from Mauritius would face difficulties, as international law offers little basis for compensation when a treaty has not been ratified.
The Chagos Islands, particularly Diego Garcia, remain a critical strategic asset for Britain and the U.S., hosting military facilities essential for regional operations. A Foreign Office spokesperson said maintaining control “protects against legal challenges to its operation and locks out our adversaries from being able to compromise its operation.” Starmer has since granted U.S. forces permission to mount “defensive” airstrikes from Diego Garcia and RAF Fairford, citing the need to prevent Iranian missile attacks and protect civilians and British lives.
Despite the UK granting access, Trump has repeatedly criticised Starmer’s handling of the issue. He questioned the efficiency of the UK in permitting the use of Diego Garcia for initial operations against Iran, suggesting delays forced U.S. forces to take longer alternative routes. Trump also referred to complications arising from claims by Chagossians, the islands’ indigenous community, as further evidence of Britain’s mishandling of the lease.
