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P&O Ferries is to re-flag all its ships which operate on the English Channel to be under the Cyprus flag ahead of Brexit.

The company said they were taking the decision ahead of Britain's departure to keep tax arrangements in the EU.

it will also mean fewer inspections and delays.

Last month P&O said it was re-flagging two of its UK ships operating on the English Channel route to France to the Cyprus registry.

The firm said in a statement: "In advance of Britain leaving the European Union on 29th March 2019, we undertook a review of the flag status of our ships on the English Channel.

"For operational and accounting reasons, we have concluded that the best course of action is to re-flag all ships to be under the Cyprus flag.

"The Cyprus flag is on the 'white list' of both the Paris and Tokyo Memoranda of Understanding, resulting in fewer inspections and delays, and will result in significantly more favourable tonnage tax arrangements as the ships will be flagged in an EU member state.

(Image: PA)

"We have no plans to make any other changes, including the terms and conditions of any of our seafarers, as a result of the new arrangements."

It comes after cross-channel rival Brittany Ferries changed around 10,000 bookings to accommodate extra sailings in case of a no-deal Brexit.

The company said timetables from Portsmouth, Poole and Plymouth were being changed to ensure "critical goods" could still be transported.

Brittany Ferries said about 10,000 customers were affected.

n December, the government announced it was awarding £102.9m to three suppliers to provide extra capacity to ease congestion at Dover if the UK leaves the European Union without a deal on 29 March.

French company Brittany Ferries was awarded £46.6m, £42.5m was awarded to Danish shipping firm DFDS and £13.8m to British firm Seaborne Freight.

It comes as a top Cabinet minister has warned that up to 40 Tory ministers are poised to quit if Theresa May forces through plans for a No Deal Brexit.

Amber Rudd is understood to have told Downing Street it could suffer the exodus unless ministers get a say on blocking No Deal.

Ms Rudd is said to want a free vote on plans that would allow the 29 March Brexit date to be extended if there's no agreement.

It comes after Ms Rudd refused to rule out resigning if the government pursues No Deal.