In his annual New Year Message, the Chief Minister has outlined what we can expect over the next 12 months. As well as plans for a new reclamation project, Mr Picardo gave updates on treaty negotiations, digital initiatives, housing plans and a potential new sales tax… Here are our key takeouts:

Potential Sales Tax
There’s still no deal, but according to the Chief Minister, significant progress has been made in treaty negotiations with the EU. If concluded, he said the treaty could bring new arrangements for frontier fluidity, immigration protocols, and a sales tax. “A treaty will also mean that we have to change how we do things. It will mean introducing parts of the European rules that we never belonged to when we were members of the EU but not in Schengen or the Single Market. It will mean the introduction of new arrangements for immigration that will deliver maximum fluidity at the frontier. It will mean the introduction of new rules for the arrival of goods into Gibraltar and a sales tax.” the Chief Minister stated.

Residency Benefits
The CM said his Government will tighten entitlement criteria for access to housing, healthcare, and scholarships. This move is aimed at ensuring that these benefits are reserved for eligible residents and sustainable in the long term. Talking of international turmoil, he said, “And in a world that has seen so much violence, pain and turmoil in the past five years, it is a privilege to be a Gibraltarian or simply to be resident in Gibraltar.”

Digital Transformation
The message also outlined plans to roll out mobile ID verification for public services, simplifying access for residents and businesses. Whilst no timeline was shared, he stated, “You will soon be able to use your ID card on your mobile device to identify yourself for public services. This will happen in the key areas of interaction between you and the Government.” This initiative forms part of broader efforts to enhance digital interactions with government services.

More Affordable Housing
Plans to reclaim land in Gibraltar’s harbour have been outlined, enabling the construction of affordable and rental housing. Notably, the CM said the project will not require upfront government funding, making it a financially viable solution to address housing demand.

What Now?
The Chief Minister highlighted the Government’s dual focus on securing a favourable treaty with the EU while preparing for the alternative of a No Deal scenario. Housing development, digital transformation, and regulatory adjustments remain key priorities.

What’s your view on the CM’s address? Tell us in the ‘Community’ pages in our Glue Up membership platform. As usual, the GFSB will continue to keep you updated on developments that may impact your business.