Judge temporarily blocks UK from completing Chagos Islands deal
The government has been temporarily blocked from concluding the Chagos Islands deal by a late-night High Court injunction.
Ministers had been expected to complete a deal that would have seen the UK hand over sovereignty of the archipelago to Mauritius in the coming hours.
But in an emergency injunction granted early on Thursday, brought against the Foreign Office, Mr Justice Goose allowed “interim relief” to Bertrice Pompe, who had previously taken steps to bring legal action over the deal.
Ms Pompe is a Chagossian woman who sees the deal as a betrayal of their rights.
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The order, granted at 2.25am, states the government may take “no conclusive or legally binding step to conclude its negotiations concerning the possible transfer of the British Indian Ocean Territory, also known as the Chagos Archipelago, to a foreign government or bind itself as to the particular terms of any such transfer”.
A hearing is taking place at the High Court this morning, with crowds gathered in support of the block.
The location of the Chagos Islands
The government insisted this morning the Chagos Islands deal is the “right thing” for the UK.
A spokesperson said: “We do not comment on ongoing legal cases. This deal is the right thing to protect the British people and our national security.”
It was expected that Sir Keir Starmer would attend a virtual ceremony today to formally hand over sovereignty of the Chagos Islands to Mauritius, despite heavy criticism from the Conservatives and Reform UK.
The government has argued international legal rulings in favour of Mauritius mean this handover is necessary.
As part of the deal, the UK will lease back a military base on the archipelago for 99 years.
Robert Jenrick, the former justice secretary, told Sky News that the Chagos Islands deal is a “sell-out for British interests”.
He said: “You’re seeing British sovereign territory being given away to an ally of China and billions of pounds of British taxpayers money being spent for the privilege.
“So, if this group can force the government to think twice, then all power to them.”
With this injunction in place, Sir Keir can no longer legally complete the deal.
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Ms Pompe, who filed the application for interim relief, believes the British government is acting with disregard for the human rights of the Chagossian people.
She has argued completion of the deal would amount to a breach of the Human Rights Act and the Equality Act.
Chagossians are the former residents of the Chagos Islands, who were removed from the islands, predominantly to Mauritius, between the mid-1960s and early-1970s.
Those born on the islands and their children hold British nationality, but subsequent generations born outside British territory have no entitlement to it.
Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.
The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.
“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.
Pics: PA
Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.
“So up to about a maximum of £950 per car finance deal where you are due compensation.”
Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.
However, the personal finance guru warned against using a claims firm.
“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.
Read more: How to tell if you’ve been mis-sold car finance
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Who’s eligible for payout after car finance scandal?
Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.
Lewis told Sky News that the consultation will launch in October – and will take six weeks.
“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.
“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”
He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.
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The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.
But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.
The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.
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