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The Dutch went 2-1 ahead when England defender Kyle Walker turned the ball into his own net in the 97th minute after a mistake by teammate John Stones, and Quincy Promes got the third in the 114th after England again gave the ball away at the back.
Marcus Rashford had put England ahead with a penalty in the 32nd minute after a mistake by Matthijs De Ligt, who went from villain to hero by heading the equaliser in the 73rd.
Jesse Lingard thought he had scored for England in the 83rd minute but a VAR review showed he was just offside.