Trump warns Burnham on Chagos deal as borrowing costs climb

Donald Trump has told GB News the Prime Minister will have to reconsider Labour's Chagos Islands handover deal, calling it a "terrible surrender". The comments come as multiple outlets report warnings to Andy Burnham over Britain's rising borrowing costs.

GB News reports Trump described the agreement to cede sovereignty of the archipelago as misguided, while the Daily Mail carries details of his upcoming visit to Ireland next week, including a meeting with President Connolly. The President also told GB News that artificial intelligence will create "millions of jobs" and described it as "a positive" technology - a striking contrast with the apocalyptic framing that has dominated British debate.

The Chagos move has been contentious since its announcement last year. The archipelago has housed a joint UK-US military base on Diego Garcia since the Cold War. The agreement negotiated under the previous government and continued by Labour would see sovereignty pass to Mauritius while maintaining the base under a long lease. Critics argue it weakens British strategic interests in the Indian Ocean; defenders say it resolves a long-running territorial dispute and secures the base's future. Trump's intervention suggests Washington may revisit the terms.

Watch whether the incoming administration formally objects to the deal or seeks amendments when Trump takes office in January. The lease terms and base access rights will determine whether this is a genuine strategic retreat or a face-saving formula that preserves the military status quo.