The Chief Minister’s 2024 Budget Address was delivered on 1 July 2024. The Chief Minister announced that forecast GDP for 2023/2024 is £2.91 billion, a 5.8% increase on the prior year, and that a small surplus of £1.9m is estimated for 2023/2024. He also stated that average estimated inflation for 2023/2024 is 2.6%, a figure which drove many of the increases announced.

Key announcements

The following were amongst the budget measures delivered:

• Corporate tax will rise from 12.5% to 15%.
• Social insurance caps (both employer and employee) rise by 5%, to £53.50 per week for employers, and £39.00 per week for employees (exact amounts subject to confirmation).
• Temporary increase of 2% in personal tax rates announced in 2022 Budget has now been reversed (1% of this had already been effected in last year’s budget).
• Minimum wage will increase from £8.60 to £8.90 per hour.
• Electricity to increase by 2.6%.
• Government charges to increase by 2.5%, rounded to nearest 50p.
• Import duty on vehicles will be as follows:
  • Electric/ hydrogen vehicles 0%
  • Full/ plug-in hybrids 5%
  • Mild hybrids 10%
• Import duty of 5% introduced for pleasure craft (capped at £35,000).
• Introduction of £25 fee per import duty refund (from 1 January 2025).

Pollution levy

An annual levy of £520 was announced in respect of every motor car over 10 years old (except classic vehicles).  This fee would have been £1,560 per annum for commercial and public service vehicles for more than eight passengers (i.e. excluding taxis), over 10 years old.

Following a public outcry, the measure was reversed and a consultation has been announced.

More information

The Chief Minster’s full budget address can be found at: https://www.gibraltar.gov.gi/press-releases/the-budget-2024-chief-ministers-address-4702024-10043