The Chagos deal will cost ten times what Labour said it would – according to the Government’s own figures, it was reported last night.
Official documents are said to show the UK will pay some £35billion to hand the islands over to Mauritius – compared to the £3.4billion previously stated by Sir Keir Starmer.
Dame Priti Patel, the Shadow Foreign Secretary, accused the Government of ‘tricking’ the public after the figures, seen by the Telegraph, were released under Freedom of Information laws.
She told the newspaper: ‘Instead of owning up to the costs, Labour have used an accountancy trick to claim the amount was only a mere £3.4billion.
‘We’ve all known it’s a terrible deal with huge costs to hard-pressed British taxpayers. But for months, ministers in public and Parliament have sought to cover up the true amounts.’
Dame Priti is expected to demand a correction and apology over the ‘cover-up’ from the Prime Minister when MPs return from their summer break on September 1.
She said the cost was almost double the entire annual policing budget or could pay for ten brand new aircraft carriers, 70 hospitals or a 5 per cent income tax cut.
The deal for the British Indian Ocean Territory was branded a ‘surrender’ by the Conservatives, who have warned against giving up the islands which are also home to a US military base.
The Chagos deal will cost ten times what Labour said it would – according to the Government’s own figures, it was reported last night
Under the terms of the controversial agreement, the UK will cede sovereignty of the islands by the end of this year and then lease back the Diego Garcia base.
Sir Keir previously claimed that this will cost £3.4billion over 99 years, but the Tories always argued it would be more like £30billion.
The Prime Minister told Parliament that estimates it would cost between £9billion and £18billion were ‘absolutely wide of the mark’ and suggested they were too high.
However, the official document, which was produced by the Government Actuary’s Department, shows the cost of the deal was first estimated at £34.7billion.
The document shows civil servants were first instructed to lower the cost on paper to £10billion, to account for an estimated annual inflation rate of 2.3 per cent over 99 years, the Telegraph reported.
Foreign Office sources told the paper that ministers had used a ‘standard’ calculation for long-term government spending and denied accusations that it was part of a ‘cover-up’.
MPs have previously requested the document in Parliament, but ministers have refused to release it.
Dame Priti Patel, the Shadow Foreign Secretary, accused the Government of ‘tricking’ the public after the figures, seen by the Telegraph, were released under Freedom of Information laws
A Government spokesman said: ‘The Diego Garcia military base is essential to the security of the UK and our key allies, and to keeping British people safe. The average cost is £101million per year, and the net present value of payments is £3.4billion – this is less than 0.2 per cent of the annual defence budget.
‘The deal is supported by our closest allies, including the US, Canada, Australia and Nato.
‘The costs compare favourably with other international base agreements, and the UK-US base on Diego Garcia is larger, in a more strategic location and has unparalleled operational freedom.’
Last night a government source said the £35billion figure was ‘inaccurate and misleading’.
