UK Halts Mauritius Payments Over Chagos Islands Deal

UK Defence Secretary Wes Streeting announced on September 23, 2026, that annual payments of at least £120 million to Mauritius have been placed on hold as the UK government reviews its deal concerning the Chagos Islands. Streeting stated that these payments will not proceed "at this stage" and confirmed that the broader agreement "can't go ahead without US support." This decision follows reports that former US President Donald Trump has refused to back the proposed deal. The Chagos Islands, a British Indian Ocean Territory, are a subject of a long-standing sovereignty dispute between the UK and Mauritius. The UK has administered the islands since 1965, but Mauritius claims sovereignty and has sought their return. A key element of the dispute involves the US military presence on Diego Garcia, one of the islands, which hosts a significant US naval support facility. The proposed deal aimed to resolve the dispute, potentially allowing Mauritius to regain sovereignty while ensuring continued access for the US military. The annual payments to Mauritius were understood to be part of this proposed resolution, compensating the nation for the use of the islands and potentially facilitating the transfer of sovereignty. The UK government's review of the deal signifies a critical juncture, with the UK's ability to proceed now contingent on securing backing from the United States. The refusal of support from Donald Trump, a significant figure in US politics, introduces considerable uncertainty into the future of the agreement. The implications of this pause extend beyond financial commitments, potentially impacting diplomatic relations between the UK, Mauritius, and the United States, as well as the long-term strategic positioning of the Diego Garcia base. The defence secretary's statement underscores the geopolitical complexities surrounding the Chagos Islands and the vital role of US approval in any resolution. The UK's decision to halt payments reflects a strategic reassessment, prioritizing the alignment of international support before committing to the financial and territorial aspects of the deal. The ongoing review suggests that the UK government is seeking to navigate the delicate balance of interests involving its own territorial claims, Mauritius's sovereignty aspirations, and the strategic requirements of its key ally, the United States. The future of the Chagos Islands and the proposed agreement now hinges on the outcome of these diplomatic and strategic considerations.