Keir Starmer is moving forward with plans to hand over the Chagos Islands to Mauritius, despite mounting criticism from allies of former U.S. President Donald Trump.

Tensions have escalated as the United States accused the UK of undermining their relationship by advancing legislation to transfer control of the UK territory, while maintaining a lease on Diego Garcia, a strategic U.S. military base.

In the House of Commons, amendments to the treaty proposed by peers were rejected, although three of Starmer’s own MPs defied party lines to support opposition efforts.

Concerns are growing about the future of the agreement amid sharp disapproval from Trump.

Trump’s latest comments have thrown Starmer into turmoil, labeling the plan as “stupid,” despite his previous endorsement of the agreement back in May.

Speaking at the World Economic Forum in Davos this morning, US Treasury Secretary Scott Bessent underlined the anger.

‘President Trump has made it clear that we will not outsource our national security or our hemispheric security to any other countries,’ he said.

‘Our partner in the UK is letting us down with the base on Diego Garcia, which we’ve shared together for many, many years, and they want to turn it over to Mauritius.’

Last February, Deputy PM David Lammy had said: ‘If President Trump doesn’t like the deal, the deal will not go forward and the reason for that is because we have a shared military and intelligence interest with the United States and of course they’ve got to be happy with the deal or there is no deal.’ 

Ministers have claimed the deal is necessary because international court rulings in favour of Mauritian claims to sovereignty had threatened the future of the base.

The government overturned efforts by peers to thwart the controversial plan to hand over the UK territory of the Chagos Islands to Mauritius and lease back Diego Garcia (pictured), which hosts a crucial US military base

Keir Starmeris pushing ahead with the Chagos Islands giveaway today despite Donald Trump’s opposition and a revolt by Labour MPs

Mr Trump’s intervention caught No10 off guard as he had previously welcomed the agreement with Mauritius as a ‘monumental achievement’

Speaking at the World Economic Forum in Davos this morning, US Treasury Secretary Scott Bessent underlined the anger over the Chagos plan

Meanwhile, Transatlantic tensions have continued to rise over Mr Trump’s threats to impose tariffs on countries opposing his grab for Greenland.

Sir Keir has joined other Western leaders in decrying the pressure tactics intended to seize the territory of Nato ally Denmark.

Chancellor Rachel Reeves – also in Davos – said this morning that the UK is putting together a coalition of countries to fight for free trade.

She also insisted that the UK’s trade deal with American is still on track, despite Mr Bessent raising doubts about whether it will be honoured. 

‘Britain is not here to be buffeted around. We’ve got an economic plan, and it is the right one for our country,’ Ms Reeves told Sky News.

‘If other countries want to increase trade barriers, that is their choice, but we are determined to bring trade barriers down which is why this week I’m meeting with European, Gulf partners, Canadians to talk about how we can free up trade and make it easier for businesses to trade around the world.

‘And on President Trump, we worked last year to get a trade deal. And as the US commerce secretary, Howard Lutnick said when I saw him yesterday, he doesn’t see any reason why that trade deal should be undone.’

Mr Trump wrote on his Truth Social platform yesterday: ‘Shockingly, our ‘brilliant’ NATO Ally, the United Kingdom, is currently planning to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER.

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

He highlighted the decision as a reason for his continued pursuit of Greenland, which is a semi-autonomous part of Denmark.

‘The UK giving away extremely important land is an act of GREAT STUPIDITY, and is another in a very long line of National Security reasons why Greenland has to be acquired.’

Mr Trump’s intervention caught No10 off guard as he had previously welcomed the agreement with Mauritius as a ‘monumental achievement’.

Foreign Office minister Stephen Doughty told MPs yesterday: ‘We will, of course, have discussions with the administration in the coming days to remind them of the strength of this deal and how it secures the base.’

The Prime Minister’s official spokesman said: ‘Our position hasn’t changed on Diego Garcia or the treaty that has been signed.

‘The US supports the deal and the president explicitly recognised its strength last year.’

suffered a small rebellion in the Commons after it was urged to ‘pause’ a deal which would hand sovereignty of the Chagos Islands to Mauritius.

Labour MPs Graham Stringer, Peter Lamb and Bell Ribeiro-Addy rebelled against the Government as they voted in favour of changes to the Diego Garcia Military Base and British Indian Ocean Territory Bill tabled by peers.

The legislation is intended to provide a firm legal basis for the operation of the strategically important Diego Garcia facility.

An amendment proposing a referendum on the sovereignty of the Chagos Islands was ruled out by Speaker Sir Lindsay Hoyle because it would ‘impose a charge on public revenue’, which the Lords cannot do.

Mr Stringer concluded: ‘I don’t have the opportunity this afternoon to vote for what I would like to, but I will vote for the amendments that the Lords have put before us.’

Alongside Mr Lamb, Mr Stringer voted in support of an amendment which proposed to stop payments to the government of Mauritius ‘in the event that the use of the base for military purposes became impossible’.

Chancellor Rachel Reeves – also in Davos – said this morning that the UK is putting together a coalition of countries to fight for free trade

The bid was rejected overall by MPs, who voted 344 to 182, majority 162 to disagree with the amendment.

Mr Stringer and Mr Lamb, in addition to Ms Ribeiro-Addy voted in support of an amendment which required the cost of the treaty to be published by the Secretary of State.

That was rejected by MPs voting 347 to 185, majority 162, to disagree with the bid.

Mr Stringer and Mr Lamb also voted in support of a proposal to require the publication of the estimated expenditure of the deal within the first financial year of the Bill becoming law.

MPs voted 347 to 184, majority 163, against that.