Britain will give EU migrants a unilateral right to stay in the UK in the event of a no deal Brexit amid concerns that failing to do so would lead to labour shortages, leaked Cabinet papers reveal.

The papers, seen by The Telegraph, state that Britain will take a "moral high ground" by agreeing to enable EU migrants to live in the UK and continue to access the NHS and claim benefits.

However the papers also highlight the fact that much of the UK's no deal planning will rely heavily "on the availability of existing labour" in the event that talks break down.

Ministers across Government have warned that Brexit must not lead to shortages in sectors such as health, social care, construction and tourism.

The Government will guarantee the rights of EU migrants regardless of whether Brussels agrees to do the same for Britons living in Spain and other European nations.