There is nothing standing in the way of prosecutors looking to extradite the American woman suspected of killing 19-year-old motorcyclist Harry Dunn, the UK foreign secretary has said.

And the government will be launching an inquiry into diplomatic immunity arrangements after Anne Sacoolas fled to the US following the crash in which Mr Dunn died, Dominic Raab announced.

Ms Sacoolas is alleged to have been driving on the wrong side of the road when she hit Mr Dunn outside RAF Croughton in Northamptonshire, an airbase used by the US military.

Now in a statement to the Commons confirming an inquiry, foreign secretary Dominic Raab has said the Crown Prosecution Service (CPS) was free to begin extradition proceedings.

He also revealed that the US embassy had told the British government that Ms Sacoolas would be leaving the UK after the crash.

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Mr Raab said the Foreign Office asked for her immunity to be waived, but the request was rejected.

Mr Dunn's family said the Commons statement “added insult to injury”.

Their spokesperson Radd Seiger said there was an “unacceptable lack of information being provided to the family”, adding: “There is even more anger and frustration tonight than there was before this statement was made.”

The foreign secretary said the government believed diplomatic immunity had “clearly ended” for Ms Sacoolas, 42, when she left the country for the US.

He added it would be for the CPS and police to decide what steps to take, telling MPs he is “not aware of any obstacle” under the UK-US Extradition Treaty.

Mr Raab told MPs: “We will continue to fight for justice for them.

“I’ve already commissioned a review of the immunity arrangements for US personnel and their families at the Croughton annex holding privileges and immunities under the Vienna Convention on Diplomatic Relations.

“As this case has demonstrated, I do not believe the current arrangements are right and the review will look at how we can make sure that the arrangements at Croughton cannot be used in this way again.”

On potential barriers to justice, he added: “Ultimately that must be for the CPS and police to decide and we’re in close contact with them.

“I am aware there are no barriers to justice being done in this case.

“And at every stage during this process I have been, and my officials have been, keen to make sure we can remove any obstacles to justice being done.”