Britain and the European Union have agreed to a landmark deal aimed at “resetting” their post-Brexit relationship, easing restrictions on travel and work for hundreds of millions of people on the continent.

Britain agreed the most significant reset of defence and trade ties with the European Union since Brexit after Donald Trump's upending of the global order pushed the two sides to move on from their acrimonious divorce.

Closer trade ties could cut prices for consumers – but they come with serious political risks for the UK government.