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.

Talks on rules governing the border of Spain and Gibraltar have been ongoing since Britain left the European Union in 2020.