Diego Garcia Military Base and British Indian Ocean Territory Bill

Debate between Esther McVey and Stephen Doughty

Consideration of Lords amendments
Tuesday 20th January 2026 Commons Chamber

[Stephen Doughty]

Absolutely, and we stand by that commitment to defend the Falklands and Gibraltar. That is exactly what we have been doing and will continue to do. I gently say that I fully recognise and respect the fact that there are many Chagossian groups who disagree with this deal as well as many who agree with it. Unfortunately, some of the comments in this place have represented only one side of that argument. It is our duty as a Government to listen to all those groups and to engage appropriately with them.

Lords Amendments 5 and 6 both relate to the costs of the treaty—

[Esther McVey (Tatton) (Con)]

Will the Minister give way?

[Stephen Doughty]

I am not going to take any more interventions at the moment. I need to make some progress.

Lords amendment 5 would require the Secretary of State to publish the total real-terms costs of payments made under the treaty, including the methodology used by the Government Actuary’s Department and the Treasury. I confess that it brings me some satisfaction to learn that the Opposition have eventually accepted the importance of quoting financial figures for a 99-year treaty in real terms. They have always known that it is misleading to ignore the impact of inflation—a pound today is not worth the same as a pound in 99 years’ time—and now at long last they seem to have seen the light. Let us see whether, in today’s debate, we can do away with the deliberately and misleadingly inflated figures that have been bandied about again by the shadow Foreign Secretary during questions today, and start discussing the financial elements of the treaty with accuracy and transparency.

--- Later in debate ---

[Stephen Doughty]

Absolutely, I can confirm that the deal secures the base for us and our allies. It secures the crucial capabilities that benefit ourselves, the United States and, indeed, all our allies.

I am happy to further canter through the calculations. The net present value was established by discounting the real value of the sums due to be paid over the duration of the treaty using the social time preference rate, as set out in the Green Book. That adjusts for social time preference, which is a reflection of the value society attaches to present, as opposed to future, consumption. That has been used in the UK by Governments of all flavours since 2003.

Members will be aware that my right hon. Friend the Chief Secretary to the Treasury announced a review of the social time preference rate shortly before Christmas. That follows a review of the Green Book last year. I do not know how that review will conclude, but I know that the Government used the correct methodology when the figures were published, and were clear and transparent in doing so, and we will continue to do so whichever way the review comes out.

[Esther McVey]

This evening, the Minister is trying to convince us to vote for this Chagos deal. The President of the United States says that the Government are handing over the island “FOR NO REASON WHATSOEVER”, so can he give us some reasons?