Nissan and other big Japanese manufacturers can only work in the UK if they are free to import parts from the EU, the country’s ambassador said, warning the government not to slap taxes on the trade post-Brexit.

Factories can only work efficiently if there are not arduous border checks holding up trade, Koji Tsuruoka said, adding that companies working in Britain want as little change to this setup as possible.

So far the debate around Nissan’s future in the UK - with its major plant in Sunderland - has focused on the factory’s ability to export cars to the EU without taxes.

But the Japanese ambassador told the House of Lords that it is also vital that the UK does not levy taxes on components imported from the EU, which are then put together in the north east of England.