Gibraltar deal goes on back burner

The prospect of a Gibraltar deal with Spain receded dramatically today.

Tony Blair and his Spanish counterpart, Jose Maria Aznar were meeting in Downing Street to try to resolve their differences on the sovereignty over the Rock.

But the Evening Standard has learned that even if they can do a deal, the decisive referendum promised to the people of Gibraltar is likely to be delayed until 2004.

The hold-up is a tacit admission that the Government sees no immediate hope of winning round the population of the colony to a combined sovereignty arrangement - and may never do so.

Senior sources said today that, barring a surprise breakthrough, the entire issue is likely to go on the back burner.