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 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".

The situation in Gibraltar has been up in the air since Brexit. It is known for its strategic location at the entrance to the Mediterranean, and is home to an RAF base. Spain claims the area belongs to them.