Overview
- A three‑judge panel at the Permanent Court of Arbitration issued a decision dated May 15 that was publicly released on June 1, rejecting Rwanda’s claims for two £50 million annual payments and related compensation.
- The tribunal found that written diplomatic exchanges after the Labour government cancelled the 2022 deal amounted to an understanding that the UK would not make the payments due in April 2025 and April 2026.
- The UK government said it had 'robustly defended its position' and described the ruling as a legal vindication of its decision to scrap the scheme when Labour took office in July 2024.
- Rwanda had argued it incurred significant upfront costs and sought about £100 million plus compensation or an apology, saying it learned of the cancellation from media reports; the panel rejected those claims by majority vote.
- The decision ends this specific international monetary dispute but leaves broader fallout unresolved, including more than £700 million already spent, only four people relocated under the plan, strained UK–Rwanda relations and fresh political debate over migration policy and taxpayer costs.