Gibraltar's 2024 Budget and its impact on Businesses
Posted on 01 Jul 2024
Today, Gibraltar's Chief Minister, Fabian Picardo, presented the annual budget for the year 2024/25 in Parliament. This speech, marking his thirteenth budget address as Chief Minister, focused on "responsibility and prudence" as the key pillars of the spending plan.
Economic Outlook for 2024/25
The budget estimates a surplus of £3.3 million for 2024/25. The published Estimates Book details the projected revenue and expenditure, providing a clear and detailed financial outlook for the coming year.
GDP and Debt-to-GDP Ratio
Gibraltar's Gross Domestic Product (GDP) has shown consistent growth, with a projected increase of 5.8% for 2023/24, reaching £2.91 billion. The debt-to-GDP ratio has decreased, standing at 23% for 2023/24, reflecting a significant improvement compared to previous years.
Tax and Fiscal Changes
Key fiscal measures include:
- Reduction of the income tax rate from 26% to 25%.
- Increase in corporate tax from 12.5% to 15%.
- Minimum wage raised by 30 pence to £8.90 per hour.
- State pension and disability benefit increased by 2.6%.
- 5% increase in both employee and employer social insurance caps.
- Water and electricity fees increased by 2.6%.
Employment and Public Ownership
The number of unemployed persons has decreased to 27, while the number of jobs has increased to 31,523. Average gross earnings have also seen a rise of 5.7%, reflecting a strengthening labor market in Gibraltar.
The government plans to finalize the purchase of AquaGib this summer and has increased the reserves of the Gibraltar Savings Bank from £67 million to £76 million, demonstrating a continued commitment to investing in public infrastructure and services.
Conclusion
The new regulations and fiscal changes presented in the 2024 budget have significant implications for businesses in Gibraltar. At TAG Consultancy, we are here to help you navigate these changes successfully. Our team of experts in financial services, accounting, and regulatory compliance is prepared to provide you with personalized advice and solutions that ensure the prosperity and sustainable growth of your business.
Please do not hesitate to contact us for more information on how we can support your financial goals in this dynamic business environment.
Contact us today:
- Email: info@tag.gi
- Phone: +350 225 01252 / +350 540 01546
- Visit our website: www.tag.gi
Location: Suite 8, Block 2, Water Gardens, Gibraltar
Your success is our priority, and we are dedicated to being your strategic partner on the path to business excellence.
