Chief Minister Fabian Picardo delivered his final budget speech on Tuesday, announcing a series of measures aimed at strengthening public finances, supporting workers and preparing Gibraltar for the implementation of the UK-EU Treaty.

‍

A key announcement was the refinancing of Gibraltar’s £475 million Covid, Treaty and Security borrowing facility. Mr Picardo said the Government had secured long-term financing through 15, 20 and 25-year tranches and would begin making annual debt repayments of at least £5 million, or 10% of any annual surplus, whichever is greater.

‍

The Budget also provided further details on Gibraltar’s new Sovereign Wealth Fund. The fund’s first investments are in UK care-home portfolios and, according to the Government, could generate between £700 million and £1 billion over the next 35 years without using public funds to acquire the assets.

‍

Several measures were announced for workers and pensioners. Public sector employees earning under £100,000 will receive a 5% pay rise from next month as part of a five-year agreement designed to recover an estimated 12.6% loss in purchasing power since 2019. The minimum wage will increase from £9.50 to £10 per hour, while the minimum public service salary will rise to £24,413.

‍

In one of the Budget’s most significant social measures, the state pension age for men will be reduced to 60, bringing it in line with women. Around 1,400 men are expected to benefit immediately. Old age pensions, survivors’ benefits and disability benefits will also increase by 2.5%.

‍

Mr Picardo linked several announcements to the UK-EU Treaty, which is expected to be signed next week and provisionally applied from 15July. Changes include the introduction of Transaction Tax, new tobacco pricing and excise duty arrangements, and additional investment in policing, border security and frontier infrastructure.

‍

Highlighting Gibraltar’s economic performance, the Chief Minister said GDP had grown from £1.08 billion in 2010/11 to a forecast £3.25 billion this year, while Government revenue had reached a record £883 million and unemployment had fallen to historic lows.

‍

Other measures included a £30,000 housing bursary for new Royal Gibraltar Police recruits, tax relief for local musicians reinvesting earnings into equipment, and the renaming of Gibraltar Airport to Joshua Hassan International Airport.

‍

Concluding his final Budget address, Mr Picardo reflected on nearly 15 years in office, stating that he would leave Gibraltar with a larger economy, higher wages and what he described as new opportunities for future generations.