Labour has been accused of a “surrender” to the European Union over the future of Gibraltar. EU Commission president Ursula von der Leyen has welcomed a deal for a fluid border which has triggered alarm in the UK.

Richard Tice, the deputy leader of Reform, said: “Once again this Labour Government have shown utter disregard for our overseas territories. This is another surrender. This is the second time in a month that Labour have folded in a deal with the EU.

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“Labour can’t be trusted to protect British interests.”

It is understood checks will not be required on people crossing the Gibraltar-Spain border. The breakthrough has spurred hopes a post-Brexit deal on the territory’s future relationship with the EU can now be finalised.

The EU Commission president welcomed the agreement, saying: “It safeguards the integrity of Schengen and the Single Market, while ensuring stability, legal certainty and prosperity for the region.”

And Gibraltarian chief minister Fabian Picardo praised the “historic agreement”.

He said: “An agreement for the future relationship between the EU and the UK in relation to Gibraltar is now a reality. It is a historic agreement.”

Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, hailed it as a “truly historic milestone: an EU-UK political agreement on the future relationship concerning Gibraltar”.

He said the deal “benefits everyone and reinforces a new chapter” in UK-EU relationship.

The Foreign Office says the deal will avoid the need for checks on people and goods crossing the Gibraltar-Spain border. It says around 15,000 people – more than half of Gibraltar’s workforce – cross the land border each day.

Foreign Secretary David Lammy said: “This government inherited a situation from the last government which put Gibraltar’s economy and way of life under threat. Today’s breakthrough delivers a practical solution after years of uncertainty.

“Alongside the Government of Gibraltar, we have a reached an agreement which protects British sovereignty, supports Gibraltar’s economy and allows businesses to plan for the long-term once again.

“I thank the Chief Minister and his Government for their tireless dedication throughout the negotiations. The UK’s commitment to Gibraltar remains as solid as the Rock itself.”

Chief Minister Mr Picardo said: “I’m delighted we have finalised a conclusive political agreement which will bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier. I have worked hand in glove with the UK government throughout this negotiation to deliver the deal Gibraltar wants and needs – one that will protect future generations of British Gibraltarians and does not in any way affect our British sovereignty.

“Now is the time to look beyond the arguments of the past and towards a time of renewed cooperation and understanding. Now the deal is done, it’s time to finalise the Treaty.”

People arriving at Gibraltar’s airport will face checks from both Gibraltar and Spanish officials. This is compared to the way the French police are able to operate at London’s St Pancras station when people board cross-Channel trains.

Gibraltar has been a British territory since it was ceded from Spain under the Treaty of Utrecht. In referendums in 1967 and 2002 the people of Gibraltar voted almost unanimously to remain British.

The final treaty will be subject to ratification by both the UK and Gibraltar parliaments.

Former Defence Secretary Sir Grant Shapps commented on the announcement of the deal, saying: “The devil will be in the detail – which we’ve yet to see. But after this Government’s abject sellout of the Chagos Islands to Mauritius, there is every reason to suspect that Labour may once again be surrendering Britain’s national defence and security interests.”

Shadow Foreign Secretary Priti Patel was also cautious, saying: “We need to wait and see the full details of the agreement and the legal text of the treaty. The last Conservative Government worked closely with the Chief Minister of Gibraltar, Fabian Picardo, and set out clearly the terms for the negotiations and our red lines, and we will now examine if this deal meets those.

“The Conservative party in Government, and now in Opposition has always been clear that any deal must ensure that the sovereignty and rights of Gibraltar are safeguarded in full and must carry the support of the Government and people of Gibraltar, as well as protect constitutional arrangements. We also consistently opposed any efforts by Spain to disrupt the flow of goods at the border.

“Gibraltar is British, and given Labour’s record of surrendering our territory and paying for the privilege, we will be reviewing carefully all the details of any agreement that is reached.”