Business Secretary Jonathan Reynolds has disputed reported figures suggesting the Chagos Islands deal with Mauritius could cost £18 billion.
Speaking to GB News, Reynolds insisted that the figures circulating in the press were not accurate.
He urged the public to wait for the official publication of the deal to see the actual details, rather than speculating about the costs.
The comments come amid growing debate about the financial implications of the agreement to transfer sovereignty of the islands to Mauritius.
Jonathan Reynolds denied Labour is handing over £18bn for its Chagos deal
GB NEWS
"I'm not close to that deal, that's the Foreign Office side of government," Reynolds told GB News.
"But I have been told that the figures in the press are not accurate. There's a request that people wait to see when the actual deal is published to see what the details are."
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The deal will see the UK hand over the Chagos Islands to MauritiusGettyWhen pressed about Labour leader Keir Starmer's refusal to rule out the reported sum, Reynolds maintained his position on waiting for the official figures.
Reynolds strongly defended the agreement, emphasizing its strategic importance for UK-US military interests.
"A loss of an essential facility by not addressing a difficult issue, which is why the previous government agreed with this too, would be a mistake," he told GB News.
"This is about protecting a core UK-US asset," Reynolds stated, responding to suggestions that the money could be better spent elsewhere.
Jonathan Reynolds joined Camilla Tominey on GB News
GB NEWS
He stressed that effective defence capabilities were as crucial as overall spending levels.
The developments come as Mauritius' former Prime Minister Pravind Jugnauth, who previously oversaw the historic Chagos deal with Britain, was arrested on Sunday in a money-laundering probe.
Jugnauth's successor, Prime Minister Navin Ramgoolam, has reopened negotiations over the Chagos agreement.
The new government is reportedly seeking increased financial compensation and aims to renegotiate the length of the proposed lease for the joint UK-US military base.
Both Mauritius and Britain have indicated that the US administration will have input on the final terms.
Addressing concerns about responsible spending, Reynolds dismissed suggestions that the deal could lead to financial risks.
"What will be irresponsible is not engaging with this issue and putting a UK-US base's future in question," he emphasised.
The Business Secretary maintained that securing the military facility's future was paramount, despite questions about potential financial implications.
The final terms of the agreement, including precise costs and conditions, are expected to be revealed when the deal is officially published.
