Accusations that Britain is preparing to double a £9billion handout for the Chagos Islands are “not correct”, a Minister insisted on Wednesday amid reports Sir Keir Starmer could face a mini revolt over the deal. The Government plans to give the British Indian Ocean Territory back to Mauritius, but pay to lease the strategically important US-UK military base on the largest island Diego Garcia. An interim deal on returning sovereignty while maintaining the key base was agreed last year. But Mauritian Prime Minister Navin Ramgoolam demanded to renegotiate the plans after he was elected in November.

There has also been a delay to allow for a verdict on any proposals from President Donald Trump’s administration in the US. Concessions offered to Mauritius by the UK are reported to include doubling the initial £9billion for the 99-year lease of the Diego Garcia military base. But the alleged mounting costs are said to have left some senior Labour MPs alarmed with one branding it a “terrible” arrangement and a “gift” to political rivals.

Environment Secretary Steve Reed said that the figures are "not correct", but could not say what the final costs would be. He told Sky News: "Clearly when this Government came in negotiations were already under way about the future of that base and its future was not secure. "Our priority is security, of course, so those negotiations continue. “There were some figures that were being... I read them. The Foreign Office has confirmed those figures were wrong but we need to wait and find out exactly where these negotiations end up before we'll know for certain.".

Britain has argued that international legal rulings on sovereignty over the archipelago mean the UK has to cede the islands to Mauritius. Mr Ramgoolam said the previous deal, negotiated last year by his predecessor, had allowed the UK unilaterally to extend the lease on Diego Garcia for 40 years, but the new terms would now require Mauritian consent. He suggested not linking payments to inflation would have halved the amount heading from UK taxpayers to Mauritian coffers.

Speaking to MPs in the nation’s capital of Port Louis earlier this week, Mr Ramgoolam claimed the deal gave Mauritius “complete sovereignty” over the island of Diego Garcia and Sir Keir Starmer had effectively doubled the amount originally offered for the lease. The UK has denied reports that the deal was originally worth £90 million a year for 99 years, or almost £9 billion - which, if the cost doubled, would rise to £18 billion.

The Foreign Office also insisted there had been "no change" to the terms for the extension. “The British prime minister informed me he intends to push ahead with the agreement reached between Mauritius and the United Kingdom,” Mr Ramgoolam said. “We remain confident it will reach a speedy resolution in the coming weeks.”. Pushed on the potential impact of the payments to Mauritius on the Government's so-called economic black hole, Mr Reed added: "We have to secure the future of that military base. It's in a very important strategic location globally.

"It's not just the UK, of course, that has an interest here, so does the US, and the Government is making sure that we hear the views of the US before we take a final decision. "But we need to wait and see what the final outcome of those negotiations are, but I can confirm those rather extraordinary figures we heard being banded around yesterday are not correct.". Dame Priti Patel, the shadow foreign secretary, accused Sir Keir of "putting his leftie shame of our country's history over our national security and our longstanding relationship with our closest ally".

She said: "He has the audacity to tell the British people they will foot the bill and pay for the indignity of his surrender of the Chagos Islands, as he isolates the new US administration by bending the knee to Mauritius and emboldening our enemies with his disastrous surrender deal.". Tory leader Kemi Badenoch said the Prime Minister should "come to Parliament and be honest with MPs" about what she called a "foolish deal".