Andy Burnham is reportedly poised to continue Labour’s controversial Chagos Islands policy, in a move that could reignite tensions with Washington and place Britain’s strategic footprint in the Indian Ocean back at the centre of a geopolitical storm.
Sources have claimed the former Greater Manchester Mayor could advance the disputed handover of the British Indian Ocean Territory, a deal previously championed under Sir Keir Starmer’s leadership, which critics say could cost UK taxpayers up to £35billion over time.
The plans, if pursued, are already drawing alarm from opponents who argue the move risks undermining Britain’s long-standing defence partnership with the United States and weakening its strategic presence in a key global military zone.
At the heart of the controversy is continued influence from Sir Keir Starmer’s former national security adviser Jonathan Powell, who has previously described the islands as “very tiny islands in the middle of the Indian Ocean where no one actually goes” — a remark that has sparked fierce criticism from security hawks.
The original policy under Keir Starmer faced sustained backlash, with critics warning that any transfer of sovereignty over the Chagos archipelago could complicate the UK–US defence arrangement at Diego Garcia, a crucial military base used by Western forces.
The issue has also become politically explosive across the Atlantic, with US President Donald Trump previously criticising the UK’s handling of the matter and signalling deep frustration with what he viewed as strategic missteps.
In a separate remark earlier this year, Mr Trump dismissed the Chagos Islands row in characteristically blunt terms, while also taking aim at British political figures involved in the dispute — a dynamic that analysts say could complicate any future reset in UK–US relations.
Mr Burnham’s reported positioning on the issue could prove especially sensitive given his past clashes with the US President. Speaking previously, he had criticised Mr Trump’s rhetoric and called for his UK state visit invitation to be reconsidered during his first term, later describing his response to the Capitol riots as unacceptable.
Meanwhile, comments attributed to Mr Trump about Mr Burnham’s political profile — including a swipe referencing his time in local government — have further fuelled the sense of personal tension between the two figures.
Diplomatic concerns have also been compounded by earlier warnings from officials. The UK Foreign Office previously acknowledged that shifting US attitudes had made progress on the Chagos agreement difficult, with ministers admitting that a key treaty update had effectively stalled following pressure from Washington.
The shelving of parts of the agreement earlier this year was confirmed in Parliament, with officials citing changing American positions and growing political resistance as key factors.
Legal experts remain divided on whether the UK could face significant compensation claims if the deal collapses entirely, adding further uncertainty to an already sensitive diplomatic file.
A spokesman for Mr Burnham insisted that no final decisions had been taken on the issue, stressing that discussions remain at an early stage.
However, the prospect of a continued or revived policy direction has already reopened political fault lines in Westminster and beyond, with analysts warning that the Chagos Islands dispute could once again become a defining flashpoint in UK foreign policy — and a test of Britain’s relationship with Washington.
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