British sovereignty over Gibraltar remains "sacrosanct", the foreign secretary has said, after the UK agreed a deal with the European Union over the territory's post-Brexit future. David Lammy told the House of Commons the agreement included a clause "explicitly protecting our sovereignty".

Gibraltar is to impose a 15% sales tax on goods under a Brexit deal, which will eventually see the British territory enter a customs union with the EU.

British Prime Minister Keir Starmer, in a phone call with Spanish Prime Minister Pedro Sanchez, agreed that a deal on the status of Gibraltar unlocked the opportunity for both countries to advance bilateral relationship,