Keir Starmer has been forced to withdraw legislation that would hand over the Chagos Islands to Mauritius after Donald Trump dropped his support.

The deal would transfer sovereignty of the Indian Ocean islands to Mauritius, while maintaining control of the US-UK Diego Garcia military base on a lease agreement for 99 years at a cost of $47 (£35) billion.

The US President had initially supported the move, but changed his stance in January after warning it was an 'act of great stupidity'.

Trump had argued that giving away the islands was an act of surrender and warned the territory could fall into the hands of China, an ally of Mauritius.

But less than a month later, the US leader seemingly backed Starmer's deal once more, saying it was 'the best he could make'. 

He added that the US could 'militarily secure' the base if the lease agreement 'ever falls apart'.

Following his comments, the bill underpinning the deal has been dropped from the King's Speech next month.

While the government stressed the deal is still the 'best way to protect the long-term future of the base', it acknowledged that it could not go ahead without Trump's backing. 

Conservative leader Kemi Badenoch hailed the government's move. In a post on X, she said: 'If Keir Starmer's Chagos surrender now finds its rightful place - on the ash heap of history - it will be because Conservatives led the fight against it from day one. 

'That it took so long is another damning indictment of a prime minister, who fought to hand over British sovereign territory and pay £35 billion to use a crucial military base which was already ours. 

'Unlike Labour, we will always put our country first. We are the only party who can be trusted to stand up for Britain's interests abroad.'

Reform's Robert Jenrick said: 'If the Chagos surrender is dead, this is a great victory.

'One day there should be an inquiry into this shabby saga: the Ministers and officials, under Labour and the Tories, who tried to sell Britain out. Shameful.'

A government spokesperson said: 'Diego Garcia is a key strategic military asset for both the UK and the US. Ensuring its long-term operational security is and will continue to be our priority – it is the entire reason for the deal.

'We continue to believe the agreement is the best way to protect the long-term future of the base, but we have always said we would only proceed with the deal if it has US support.

'We are continuing to engage with the US and Mauritius.'

The Government has stressed the deal is necessary to guarantee the future of the Diego Garcia base after an advisory International Court of Justice ruling in 2019 backed Mauritian claims to sovereignty over the islands.

Warnings have previously been made about the how the surrender would expose the islands to environmental damage. 

Last year Labour's foreign affairs committee chairwoman, Dame Emily Thornberry, said that despite 'warm words' from the Mauritian government on the subject of conservation, the ecosystem around Mauritius itself has been substantially 'degraded'. 

The UK government set up the Chagos Marine Protected Area in 2010, with patrols enforcing the no-take zone, and other activities to protect the unique habitats and rich marine biodiversity.

This legal status has always been opposed by Mauritius and was even ruled as illegal by a UN tribunal in 2015, which said it violated Mauritius’ right to fish there.