The Chamber of Commerce has said that the headline growth in the economy announced in the budget “belies the fact that there are a number of sectors that are still recovering from the pandemic and are trading well below pre-pandemic levels.”

A statement continued: “This year’s budget, like previous budgets, just serves to increase the cost burden on private sector businesses which is also having to face the effects of high interest rates. It is disappointing that no material measures were announced to assist the private sector and that there was nothing to attract new business or new investment. It is essential to ensure that Gibraltar’s economy is as diversified as possible and that action is taken to tackle the issues affecting the sectors that continue to face challenges.

“The private sector is the main driver of the economy. It pays around 75% of the income tax, virtually all of the corporation tax and import duty. The stark reality is that without it there is no economy and if there is no economy there are no public services. To keep taxing the private sector further only serves to make Gibraltar less competitive and less attractive as a base to run a business.  In these uncertain times there is a risk that the economy will start to shrink with the consequential effect on public services.

“For many years the Chamber has urged the Government to focus on cutting waste and driving efficiency. Instead they have continued to spend to the point where a number of Government departments have once again exceeded their budgets by sizeable amounts.  This lack of control has become a worrying feature to say the least, especially when uncertainty continues to reign.”