It is not Starmer changing his mind, it is Trump blocking the move with legalities. I think it is being shelved for the moment because with everything else that has been going on internationally, there is not time for the formalities before the current parliamentary session ends.
The Spectator says that it is "a political question and a legal question, because what may not have been understood thus far is that American consent to the transfer of sovereignty is a legal condition, not simply a political necessity – and may not yet have been granted."
spectator.com/article/how-trump-could-block-the-chagos-deal/
Other complications are that the UK and the US share the use of the base on the island, with legal consequences. Because Mauritius is a non nuclear power there will be a restriction on nuclear Submarines and US aircraft carriers dropping in for repairs. There is also a possibility that if the UK returns the Islands, the US would use that as a lever on Greenland (sorry, I can't find the mention of those points again to post a link to them)
Le Monde says:-
"Sir Keir Starmer has been forced to drop legislation which would cede sovereignty of the Chagos Islands to Mauritius in a further deterioration of relations with Donald Trump
The Times has been told that a bill underpinning the controversial deal will not be included in the King's Speech next month after the US president branded it an "act of great stupidity" and withdrew his support
The government stands by the deal and will attempt to persuade Trump to change his mind but has acknowledged that it cannot proceed without his backing
Ministers are "deeply frustrated" with Trump, who initially supported the deal after extensive discussions between intelligence agencies but changed his mind during a dispute with Nato over plans to seize Greenland
The government believes that it puts the future of Diego Garcia, the UK-US base in the islands which has been used during the Iran war, at risk
It is concerned that Mauritius will mount a legal challenge granting it access to the waters around Diego Garcia, making it harder for the base to host nuclear submarines and patrol surrounding waters"
x.com/Steven_Swinford/status/2042690699158503677
"Starmer has previously insisted that international legal rulings have put Britain's ownership of the Chagos in doubt and only a deal with Mauritius would guarantee that the base remains functional. Government officials cited by the BBC said the agreement was not being entirely abandoned.
But they said the legislation underpinning it would not pass before parliament is dissolved in coming weeks and a new Chagos bill is not expected to be put forward.
Britain kept control of the Chagos Islands after Mauritius gained independence in the 1960s. It evicted thousands of Chagos islanders who have since mounted a series of legal claims for compensation in British courts.
In 2019, the International Court of Justice recommended that Britain hand the archipelago to Mauritius. The deal would have given Britain a 99-year lease of the base, with the option to extend."
www.lemonde.fr/en/international/article/2026/04/11/uk-to-shelve-chagos-handover-after-trump-criticism_6752311_4.html