Brexit backstop compromise 'blocked by Spain' - report

Attempts by the UK to reach a compromise with the European Union over the Irish backstop in order to agree a Brexit deal are being blocked by Spain as it makes a “land grab for Gibraltar”, according to reports.

Madrid is reportedly insisting on excluding Gibraltar from all agreements between Britain and the EU after Brexit as part of its bid for shared sovereignty of the Rock, the Daily Telegraph reported.

According to newspaper’s sources, the Spanish government has been trying to use the Brexit negotiations in their favour to force Britain to make concessions or hand over the disputed territory.

The move comes after the UK, Spain and Gibraltar governments on Monday tied up a tax agreement for the disputed British overseas territory, which could have ended attempts by Spain to take sovereignty of the Rock.

This agreement ensures that despite any Brexit outcome, the status of the Rock as a British territory with access to Spain will be respected.

A source close to Gibraltar's chief minister Fabian Picardo said: "The Spanish cabinet is to agree measures to apply in no-deal and sign a tax agreement in relation to Gibraltar."

The report comes after UK attorney general Geoffrey Cox and Brexit Secreaty Stephen Barclay continue to struggle to reach an agreement in their negotiations in Brussels.