Operator P&O Ferries is seeking almost £33m in damages from the UK government over its handling of a challenge to ferry contracts under a no-deal Brexit.

The British-based shipping company, BBC reports, also wants courts to cancel the Department for Transport's settlement with Eurotunnel, and impose civil penalties.

In March, the DfT agreed to pay £33m to Eurotunnel, after the cross-channel operator sued for not being considered for a no-deal Brexit freight contract.

The DfT said it acted appropriately.

"This cross-government decision helped protect vital freight capacity for medical supplies to enter the country, in the event the UK left the EU without a deal," a spokesperson said.

As part of the agreement with Eurotunnel, the French company was mandated to spend £33m of taxpayers' money on improvements to the infrastructure of its terminal in Folkestone.

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