Diego Garcia Military Base and British Indian Ocean Territory Bill

Esther McVey Excerpts

Tuesday 20th January 2026 Commons Chamber

[Stephen Doughty]

Absolutely, and we stand by that commitment to defend the Falklands and Gibraltar. That is exactly what we have been doing and will continue to do. I gently say that I fully recognise and respect the fact that there are many Chagossian groups who disagree with this deal as well as many who agree with it. Unfortunately, some of the comments in this place have represented only one side of that argument. It is our duty as a Government to listen to all those groups and to engage appropriately with them.

Lords Amendments 5 and 6 both relate to the costs of the treaty—

[Esther McVey (Tatton) (Con)]

Will the Minister give way?

[Stephen Doughty]

I am not going to take any more interventions at the moment. I need to make some progress.

Lords amendment 5 would require the Secretary of State to publish the total real-terms costs of payments made under the treaty, including the methodology used by the Government Actuary’s Department and the Treasury. I confess that it brings me some satisfaction to learn that the Opposition have eventually accepted the importance of quoting financial figures for a 99-year treaty in real terms. They have always known that it is misleading to ignore the impact of inflation—a pound today is not worth the same as a pound in 99 years’ time—and now at long last they seem to have seen the light. Let us see whether, in today’s debate, we can do away with the deliberately and misleadingly inflated figures that have been bandied about again by the shadow Foreign Secretary during questions today, and start discussing the financial elements of the treaty with accuracy and transparency.

--- Later in debate ---

[Stephen Doughty]

Absolutely, I can confirm that the deal secures the base for us and our allies. It secures the crucial capabilities that benefit ourselves, the United States and, indeed, all our allies.

I am happy to further canter through the calculations. The net present value was established by discounting the real value of the sums due to be paid over the duration of the treaty using the social time preference rate, as set out in the Green Book. That adjusts for social time preference, which is a reflection of the value society attaches to present, as opposed to future, consumption. That has been used in the UK by Governments of all flavours since 2003.

Members will be aware that my right hon. Friend the Chief Secretary to the Treasury announced a review of the social time preference rate shortly before Christmas. That follows a review of the Green Book last year. I do not know how that review will conclude, but I know that the Government used the correct methodology when the figures were published, and were clear and transparent in doing so, and we will continue to do so whichever way the review comes out.

[Esther McVey]

This evening, the Minister is trying to convince us to vote for this Chagos deal. The President of the United States says that the Government are handing over the island “FOR NO REASON WHATSOEVER”, so can he give us some reasons?

--- Later in debate ---

[Priti Patel (Witham) (Con)]

Labour’s Chagos surrender Bill is back, and this House has its last chance to act in the national interest, defend the rights of the Chagossian community and protect the money of hard-pressed British taxpayers, who are being expected to foot a colossal bill of £35 billion, which is being given to a foreign Government to—guess what?—cut their taxes, while our taxes rise.

I put on record the thanks of Conservative Members to the other place for their scrutiny, and their diligence in once again holding this Government to account. When Labour plotted to deny this House a debate and a vote on the surrender treaty during the 21-day process under the Constitutional Reform and Governance Act 2010, it was Conservatives in the House of Lords who forced a debate and a vote. When Labour limited the time for this House to give the Bill the line-by-line scrutiny it needed, it was the House of Lords that stepped in and made time available. When this Labour Government ignored and neglected the views of the Chagossian community, it was the House of Lords and the International Relations and Defence Committee that came to the rescue and organised a survey, giving important insights into Chagossians’ concerns about the Government of Mauritius and the future of their ancestral home. When Labour refused to accept any amendments to modify and improve this £35 billion surrender Bill, it was the House of Lords that made important changes, which we are debating today.

Let me be clear: this is a Bill that the Conservatives have fought against at every single stage. We will not accept this deal to surrender British sovereignty; it is a deal that we will continue to oppose and challenge Ministers on. Every vote today is a vote to kill this Bill. We will keep on voting against this Bill and opposing it until the Government—and, one would hope, the Prime Minister—see sense, withdraw it and tear up the treaty. We are not the only ones vociferously opposing this, because we now know that the President of the United States is against it; he says that it is being done “for no reason whatsoever”, and that China and Russia will

“have noticed this act of total weakness.”

[Esther McVey]

I asked the Minister what the reasons were for the Government signing away the Chagos islands. He could not give any reasons. The President of the United States says that the Government are giving the islands away “for no reason whatsoever”, so can my right hon. Friend give us any reason to sign off this deal today?

[Priti Patel]

Let me remind my right hon. Friend exactly what the President of the United States said. He has said that this is being done “for no reason whatsoever”, and that

“There is no doubt that China and Russia have noticed this act of total weakness.”

The previous Foreign Secretary, now the Deputy Prime Minister, is on the record as saying:

“If President Trump doesn’t like the deal, the deal will not go forward… they’ve got to be happy with the deal or there is no deal”,

so why has Labour continued to press this Bill?

In the light of the President’s comments, can the Minister tell us what will happen to the status of the 1966 exchange of notes between the UK and the United States, which states clearly that the British Indian Ocean Territory

“shall remain under United Kingdom sovereignty”?

What is the impact on that agreement? Is it being changed?