Nigel Farage has suggested holding a referendum on the future of the Chagos Islands as he claimed Donald Trump’s team is “appalled” at the UK’s “rotten” deal.

The Reform UK leader put forward the idea of allowing the Chagossian people to decide the future of their homeland as he joined other opposition MPs in raising concerns over the agreement to give up sovereignty of the Indian Ocean archipelago to Mauritius.

New Mauritian prime minister Navin Ramgoolam has asked for an independent review of the “confidential draft agreement agreed so far” while Mr Farage, who has strong ties with President-elect Mr Trump, has highlighted doubts from the Republican camp.

Defence minister Luke Pollard, responding to a Commons urgent question on Monday, claimed the deal is “strongly supported” by the US and protects the long-term future of the joint US-UK military base on Diego Garcia.

He added necessary safeguards will be in place to prevent China gaining a foothold in the area.

Mr Pollard said: “The agreement secures the effective operation on a joint facility on Diego Garcia well into the next century, the agreement is strongly supported by our closest friends and allies, including the United States. It has been supported by all relevant US departments and agencies following a rigorous scrutiny process.

“This base is a key part of UK-US defence relationship as it enables the United Kingdom and the United States to support operations that demonstrate our shared commitment to regional stability, provide rapid response to crises, and counter some of the most challenging security threats we face. The President of the United States (Joe Biden) applauded the agreement.”

He added: “There will be clear commitment in the treaty to robust security arrangements, including arrangements preventing the presence of foreign security forces on the outer islands so that the base can continue to operate securely and effectively.

“The operation of the base will continue unchanged, with strong protections from malign influence. For the first time in 50 years, the base will be undisputed and legally secure.”

Mr Farage told the chamber: “The presentation of what the American administration believes is a fantasy. Joe Biden is going, in fact many think he’s gone already.

“I’ve been contacted by very senior officials and advisers from the incoming Republican administration and every single one of them is appalled at this deal, they know the leasehold agreement will not survive, just as the deal with China over Hong Kong didn’t survive.

“Hasn’t the time come for the Government to admit this is a rotten deal for the UK, a rotten deal for America and an even worse deal for the Chagossians?

“And if you care so much about the sovereignty of the Falklands being in the hands of the Falkland Islanders, why not have a referendum of the Chagossians and ask them to settle who should have sovereignty over those islands?”

Mr Pollard said “whipping up uncertainty” over the future of the Falklands is “not helpful”, adding: “The Falklands are British for as long as the people of the Falkland Islands want to be British.”

He added he is “certain” that MPs, the US and other allies will see the deal secures the future of the military base “well into the next century”.

James Cartlidge at the Northern Ireland Affairs Committee
James Cartlidge called on ministers to put a pause on the deal (PA)

Conservative MP Sir Julian Lewis (New Forest East) asked what there is in the agreement to prevent China putting “listening outposts on other islands that could compromise the security of Diego Garcia”.

Mr Pollard replied: “They are very specific arrangements in the treaty that prevent any foreign power putting security apparatus, security forces on any of the (outer) islands.”

On the review of the agreement by Mauritius, Mr Pollard said: “It’s quite normal, I think, for any new government to look again at a deal signed by immediate predecessors.”

At this point Tory MPs shouted: “What about the US?”

Mr Pollard added: “The reason I say that is when they look at the deal, the detail of this deal will be convincing – just as it will be for our US friends because it’s a deal backed by the entirety of the US security apparatus.”

Shadow defence secretary James Cartlidge earlier called on the Government to pause the deal until Mr Trump’s inauguration.

He said: “Whilst we would prefer the Government to cancel the whole deal, at the very least will he pause any further ratification until the new US administration’s in place, and the Mauritius government have concluded their review?”

Chagossians were forced to leave the central Indian Ocean territory by 1973 to make way for the military base.

The expulsions are regarded as one of the most shameful parts of Britain’s modern colonial history and Chagossians have spent decades fighting to return to the islands.

The United Nations’ highest court, the International Court of Justice, previously ruled the UK’s administration of the territory was “unlawful” and must end.