Starmer’s Chagos Surrender Deal to Fund Massive Tax Cuts for Mauritians

Sir Keir Starmer’s Chagos surrender deal will fund tax cuts for Mauritians, it’s emerged. The Mauritian Government says it will use £500 million to pay off its national debt, allowing it to abolish income tax for 81% of Mauritians and raise minimum salaries. The Telegraph has the story.

The Mauritian Government has said it would use almost £500 million in payments under the terms of the Chagos agreement to pay off its national debt.

This will allow ministers to abolish income tax entirely for 81% of employed Mauritians, and raise minimum salaries.

Sir Keir has been criticised over the deal, which will cost the UK up to £30 billion over a 99-year period, including rent payments to use a joint US-UK military base on the Chagos Islands and creating a pot of development spending for Mauritius.

Conservative and Reform MPs have said the “surrender” of the islands, which have been owned by the UK since before Mauritius was granted independence in 1968, was unnecessary and expensive.

The terms of the deal include rent payments of £165 million a year for the next three years for the Diego Garcia military base, which has been used for bombing runs by Britain and America in the Middle East.

Mauritian leaders celebrated the deal as the “decolonisation” of the Chagos Islands, which lie at the centre of the Indian Ocean and are uninhabited except for military personnel.

Navin Ramgoolam, the Mauritian Prime Minister, has now announced that the money paid by the UK will help Mauritius cut taxes, so that 81% of people in the African island nation will not pay any income tax.

It comes despite warnings that Britons face tax hikes in Rachel Reeves’s Budget this autumn, which is now thought to contain a black hole tens of billions of pounds large.

The Mauritian reforms were announced in a budget speech by Mr Ramgoolam last Wednesday, when he said that the UK’s Chagos payments for the next three years would be used to help pay off the country’s national debt, which has reached 90% of GDP.

He said that to reach a long-term debt level of 60%, the government would adjust “both the expenditure side and the revenue side of the budget”, and raise the minimum salary before an employee pays income tax to £8,073 a year.

That increase, of 28%, will scrap income tax entirely for 44,000 people and reduce levies on all other earners.

“As a result of the measures I have introduced, 81% of employees in our country will not pay any income tax,” he said, adding that he had also decided to cut VAT on some food products.

After three years, British payments for the Chagos Islands will be used for a “future fund” to “create wealth for future generations”, Mr Ramgoolam said.

Worth reading in full.

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RW
RW
10 months ago

It bears repeating here that these islands are uninhabited because the whole population got deported in 1972 to ensure the safety of the military base. To this date, the Chagossians are fighting for their right to return home. But as they’re just British and thus, of no concern to Starmer, they may instead help with in paying Mauritius to colonize it.

huxleypiggles
10 months ago

So a severely damaged, on its arse economy in the West, is being raped in order to wipe out the national debt of a Third World economy to which we have no ties. I see.

He’s not going to give up until this country goes up like a powder keg is he?

Simon
Simon
10 months ago
Reply to  huxleypiggles

Get the popcorn!

kev
kev
10 months ago

It appears to be deal that only benefits one side (not us), and was totally unnecessary, there is nothing for Mauritius to administer except the outrageous payments we make to enable the US to site their B52 and B2 long range bombers!

Truly bizarre and nonsensical, however you look at it, or I’m missing something!

Its not because of its strategic importance because we already owned it and weren’t paying anything to a 3rd party to operate. We still have the operational costs of maintaining the base there, do US contribute to that?

Old Arellian
Old Arellian
10 months ago

TTK or “Liar liar, Lord Alli’s pants on fire” has just had the temerity to repeat the lie that China opposed the Mauritius “deal” in the HOC a second time. What happened to not lying in the House? Oh, of course “it’s OK when WE do it”

ComradeSvelte
ComradeSvelte
10 months ago

Why is 2TK doing this? What is the logic if any behind this deal? Love the Mr Ramgoolam’s “Future Fund” doesn’t he mean ‘his bank account’?….

Heretic
Heretic
10 months ago
Reply to  ComradeSvelte

You are absolutely right! It turns out that members of only TWO INDIAN IMMIGRANT FAMILIES have been Prime Ministers of Mauritius for decades, and in all that time, one French-Indian immigrant Berenger held the post for two years.

All the political parties pretend to be “centre left” while being Communist, including the Militant Socialist Movement MMM, and the two Indian Immigrant families of Jugnauth and Ramgoolam have controlled the Mauritian government for the entire time, playing musical chairs by pretending to oppose each other. Just like our LibLabConReform Uniparty.

So it is the Ethnic Indian Jugnauths and Ramgoolams who will be TROUSERING OUR CASH.

Heretic
Heretic
10 months ago

OK, we all understand that Communist Traitor Starmer is doing this to help destroy Great Britain, by draining yet more British Taxpayers’ money to the Third World for no reason at all, and to help Communist China, and to hamstring the crucial Allied military defence base at Diego Garcia.

How is this not TREASON?

And why has this TREASON been rammed through without the consent of the British People or their Parliament?

And why have the Armed Forces of the UK not vehemently objected to this TREASON?

And why has the USA feebly gone along with this Communist TREASON by its ally, which will also undermine the security of the American forces on Diego Garcia?

sskinner
10 months ago
Reply to  Heretic

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
Lenin

“The best way to destroy the capitalist system [is] to debauch the currency.”
Lenin

RW
RW
10 months ago
Reply to  sskinner

Lenin did neither of both. His idea for crushing the bourgeoisie, continued by his successor Stalin, was red terror.

Bill Bailey
Bill Bailey
10 months ago

I frequently listen to the opinions of people from outside the western sphere and Starmer is considered to be a complete clown, NATO and the EU are on a similar par.

sskinner
10 months ago

Starmer has now opened the border between Spain and Gibraltar. This border was never open when we were in the EU and we had not signed up to the Schengen Agreement. This open border now makes it easier for North Africans to enter the UK, just as the Spanish enclaves in North Africa are ‘excellent’ entry points into the EU for North Africans.
Who gives Starmer his instructions?

RTSC
RTSC
10 months ago
Reply to  sskinner

The WEF.