Diego Garcia Military Base and British Indian Ocean Territory Bill

David Reed Excerpts

Monday 26th January 2026 Commons Chamber

[Stephen Doughty]

The hon. Member asks an important question. The Government were clear about the forecast costs when they signed the deal, which were that the average cost per year was £101 million and the net present value was £3.4 billion. As I made clear the other day, forecast costs are, of course, forecasts; we expect any number to change over time, in particular to reflect things such as the Office for Budget Responsibility forecast inflation rate, which was updated in November 2025. I mentioned that the Treasury was updating the methodology for the social time preference rate. We are not going to keep recalculating every day, but at the time when the treaty was published we were very clear and gave a lot of information; we have given answers on this issue on many occasions and will continue to keep the House updated in the usual way.

[David Reed (Exmouth and Exeter East) (Con)]

The former Foreign Secretary said very explicitly last year that if the United States does not like this deal, it will not go ahead. The US does not like this deal; it has been very explicit on that. Can the Minister tell us whether the now Deputy Prime Minister was telling the truth when he made those comments?

[Stephen Doughty]

We have been very clear that the agreement we have struck is vital for protecting our national security and guaranteeing the long-term future of this vital base for both the United Kingdom and the United States, which had been under threat. I have referenced the many comments from across the United States Administration. We continue to engage with the United States every day, making clear the very important parts of the deal that protect its security and ours, and we will continue to have such conversations.