The British ferry operator P&O is to re-flag its vessels under Cyprus ahead of the UK's exit from the European Union.

A spokesman for P&O Ferries said: "In advance of Britain leaving the European Union on March 29th 2019, we undertook a review of the flag status of our ships on the English Channel.

"For operational and accounting reasons, we have concluded that the best course of action is to re-flag all ships to be under the Cyprus flag."

The company added that the reason it chose Cyprus is because the Cypriot flag is on the 'white list' of both the Paris and Tokyo Memoranda of Understanding - resulting in fewer inspections and delays.

It also said it will result in "significantly more favourable tonnage tax arrangements", as the ships will be flagged in an EU member state.

"We have no plans to make any other changes, including the terms and conditions of any of our seafarers, as a result of the new arrangements."

The firm runs ferry services across the Irish Sea, English Channel and North Sea with almost 4,000 employees.

It has a fleet of more than 20 ships and operate more than 30,000 sailings a year.

In addition to sailing on eight major routes between Ireland, Britain, France, Holland and Belgium, it also operates intermodal continental hubs at Zeebrugge and Europoort.

It carries more than 10 million passengers, 1.6 million cars and 2.2 million freight units.