News, views and top stories in your inbox. Don't miss our must-read newsletter Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Spain stepped up the ­diplomatic war over Gibraltar yesterday by threatening to cut off airspace and ramp up charges at the border.

Foreign Minister Jose Manuel Garcia-Margallo also suggested he would target online gambling firms based there and warned: “The party’s over.”

He has drawn up proposals to make people pay as much as £86 to visit the British territory from the mainland, and thousands of locals who own property in Spain may face new tax probes.

Planes heading to Gibraltar could also be banned from Spanish airspace.

The Foreign Office said it is concerned by the comments and promised to safeguard British sovereignty.

MISERY

The Spanish government is suspected of using the row as a smoke screen to distract from its economic misery.

The dispute began over fishing rights but escalated when a Spanish patrol boat fired on a jet ski.

Border officials also made drivers sit in searing heat for seven hours recently while they carried out checks.

But Mr Garcia-Margallo said it is an essential part of the fight against smuggling and money laundering.

He added: “If queues and congestion are the result then perhaps we need to think about a charge of 50 euros to enter Gibraltar and 50 euros to leave.”

He also hinted relations would suffer even further unless Gibraltar removes an artificial reef designed to stop Spanish trawlers.

He added: “The money we collect from a border crossing charge would be very useful for helping Spanish ­fishermen affected by the destruction of fishing grounds.”