Below follows Minister Nigel Feetham's 2025 Budget statement:

Madam Speaker,

I stand before you today delivering my second budget address in this Parliament. 

Madam Speaker, I listened carefully to the Leader of the Opposition’s Budget Address. As is his right, he raised criticisms on a number of fronts. Without intending any disrespect, I indicated across the floor of the House that I would respond briefly to the key points that relate to me, and I now do so before turning to the rest of my address and accepting without reservation that the Leader of the Opposition has an important constitutional job to do in holding the Government to account. 

Madam Speaker, the Chief Minister in his Budget Address outlined that £50 million of the circa £60 million in additional Corporate Tax revenue this year arises from what he referred to as an exceptional item.

The Leader of the Opposition appeared to cast doubt on how tax receipts could be described as ‘exceptional’. Let me address that immediately.

First, we must be careful not to breach our legal obligation of taxpayer confidentiality. That necessarily limits how much we can say about operational tax matters. 

However, what I can say is this: as I have explained repeatedly in this House and publicly, a central pillar of our National Tax Strategy has been the use of compliance enquiries and enforcement interventions. 

By expanding our tax compliance and enforcement capacity through methods I have outlined before, and will again today, we have generated substantial additional corporate tax receipts. It is not rocket science for anyone that understands tax policy and the Leader of the Opposition should not overly obsess on a single figure, such as £50m, at the expense of the full picture. 

In other jurisdictions, this is sometimes referred to as addressing the Tax Gap - the difference between what the tax authority believes is owed and what is actually collected.

And the result? Madam Speaker, the largest single-year transfer of wealth from big business to the public purse in Gibraltar’s history.

This revenue has protected public services, helped us provide security, and helped stabilise our public finances, all without increasing the tax burden on ordinary working people.

By any standard of achievement, this would, in the plain English sense of the word, be described as truly exceptional.

Madam Speaker, the Leader of the Opposition says the Government has been ‘saved’ by higher Corporate Tax revenue. It is a curious form of criticism to question the classification of revenue we worked hard to secure, while at the same time acknowledging its essential role in stabilising our public finances.

Madam Speaker, if success on this scale is called  being “saved”, then I say: let us continue saving Gibraltar because all countries are facing the same challenge. 

I am therefore proud of what we have delivered and confident that the steps we are taking at the Income Tax Office will lead to lasting improvements in compliance, as I will now go on to explain.

Madam Speaker, as the Leader of the Opposition reminded the House in his Budget Address, I was indeed in Brussels last week lobbying MEPs for Gibraltar’s removal from the EU’s list.

Not the FATF list, Madam Speaker, we were removed from that last year under my leadership, as every member of this House well knows.

The European Commission has since twice confirmed that we should be delisted from their separate list on purely technical grounds. I have explained the position time and again in this House. 

I took note, however, that the Leader of the Opposition in his Budget Address appeared to criticise my efforts in Brussels. He is entitled to do so but then my clear and obvious reply is simple:

The only ones still attacking Gibraltar on this issue are the Partido Popular and Vox. 

Let’s be absolutely clear, Madam Speaker: they are the ones standing in the way of Gibraltar achieving a fair and rightful outcome. 

No one else is. Not the European Commission. Not the majority of the European Parliament - except, that is, for those clearly acting under political pressure or driven by agendas that have little to do with Gibraltar itself. Just them Madam Speaker - the PP and Vox. 

And I have no doubt Madam Speaker that every Member of this House will join me in rejecting every single falsehood uttered by the Vox MEP in the European Parliament on Monday evening when the European Commission once again robustly defended Gibraltar’s case, and not just her final despicable words “Gibraltar es Espanol”.

With that, Madam Speaker, I return to the rest of my address.

I will provide an overview of some of the work and initiatives we have been delivering through my Ministries, a portfolio that includes Taxation, Financial Services, Gaming, and Justice. 

I would like reflect on the strong foundations we have built since taking office, which includes:

Strengthening the public finances of Gibraltar through our tax work. 

Strengthening financial services and gaming sectors by forging closer ties with the industry and regulators;

Reinforcing Gibraltar’s global standing in anti money laundering by enhancing sanctions legislation, introducing Unexplained Wealth Orders, increasing resources for law enforcement and advancing compliance post FATF whitelisting;

Supporting local business growth and workforce development through active outreach by engaging with industry and facilitating student placement schemes and youth employment initiatives through my Connect Hub initiative;

Enhancing enforcement efforts by providing the necessary support and training to the Economic Crime Unit and HM Customs Investigation Branch, thus ensuring that our enforcement systems remain properly resourced. 

 

TAXATION

 

Madam Speaker, first of all I would like to turn to my Tax Ministry, one of my key portfolios. 

 

Since taking Office, I have dedicated considerable amount of my time and effort to working closely with my team on tax matters, given the critical link between optimising tax revenue and ensuring sustainable economic stability and financial prosperity.

 

Madam Speaker, as I have said repeatedly in this House - tax revenues are vital.

 

It remains the single largest source of government funding, accounting for over half of all recurring revenue in 2024/2025.

 

Tax revenues are the lifeblood of any government, and without it we cannot fund essential public services or invest in critical infrastructure. It also lays the foundation for our nation’s macroeconomic future, not just for today, but for generations to come.

 

Madam Speaker, the total tax revenue collected for the 2024/2025 fiscal year stands at £474 million.

 

This is a historic milestone. 

 

The highest level of tax revenue Gibraltar has recorded in over four decades.

 

Truly, one for the record books.

 

This record-breaking figure includes £262 million in personal income tax and £212 million in corporate tax.

 

Madam Speaker, let me be clear: this surge in tax revenue has not come from increasing the burden on working people. On the contrary - we lowered personal tax rates in the last Budget. What we are now seeing is the result of big businesses contributing their fair share to the public purse.

 

We have not only met but significantly surpassed the forecasts set out in our budgetary estimates.

 

Madam Speaker, to my knowledge, the corporate tax yield in Gibraltar has never, at any point in our history, reached any where near these levels.

 

Another unprecedented achievement.

 

Indeed, the figures reveal a striking 37% increase in corporate tax revenues when compared to the previous financial year.

 

This speaks volume for the effectiveness of our National Tax Strategy, one that I have previously explained in this House. 

 

Madam Speaker, these outstanding results are no accident.

 

They are the product of a well-designed and carefully implemented policy. 

 

Nor are these numbers just statistics.

 

They reflect a huge amount of work. 

 

But Madam Speaker, we cannot rest on these achievements.

 

Our ongoing National Tax Strategy will focus on optimising revenue through enhanced compliance, rigorous enforcement, and greater cross-government collaboration.

 

Fiscal discipline must also remain at the core of our approach.

 

It is essential not only for ensuring the sustainability of our economy today, but also for safeguarding the well-being of future generations.

 

Madam Speaker, Honourable Members will recall the recruitment initiative launched last year, when we recruited two senior tax professionals to the Income Tax Office. Building on that momentum, we have further strengthened the team this year with the recruitment of two tax analysts.

 

This is how we build sustainable success, through smart investment in expertise, through strategic resourcing, and through a clear, results-driven vision for the future of our tax system.

 

Madam Speaker, when we embarked on the National Tax Strategy, the situation was troubling.

We were facing a decline in tax contributions from big businesses, alongside a dramatic increase in reported tax losses, from over £2 billion when I first raised the matter in this House, to over £9 billion when we introduced corrective legislation.

Even more concerning, Madam Speaker, was the growing perception among some that paying corporate tax was optional rather than a legal obligation.

We stood at a critical crossroads. And in response, Madam Speaker, we took firm and decisive action.

The results made public now speak for themselves.

 

And we have achieved these results precisely at the right moment.

 

At the time when like in every other country, demands on public expenditure continue to grow across key areas such as healthcare, education, and infrastructure.

 

We are fostering a change in taxpayer behaviour and one that emphasises that businesses operating from Gibraltar and generating substantial profits here have a duty to contribute fairly to the public purse.

 

And Madam Speaker, we are now prepared to advance into the next phase of our National Tax Strategy.

 

It focuses on the practical implementation of the legislative and policy measures we have previously introduced.

 

It targets the identification and closure of existing loopholes and looks to tighten our safeguards against both tax avoidance and tax evasion.

 

While tax planning within the boundaries of the law is legitimate Madam Speaker, aggressive tax avoidance and deliberate evasion represent serious threats to the credibility and effectiveness of any tax system.

 

Moreover, Madam Speaker, it ensures that government revenue is protected and optimised, revenue that is vital for sustaining public services, investing in infrastructure, and driving national development.

 

This next step follows the publication of the Bill on 10 April 2025.

 

Madam Speaker, this Bill, which we expect to formally lay before Parliament in the coming weeks, introduces significant revisions to the anti-tax avoidance provisions in our tax legislation. 

 

These changes reflect both the evolving nature of international tax planning and the need to ensure that Gibraltar’s legal framework stays robust, responsive, and future proof.

 

We are also enhancing inter-agency collaboration — a cornerstone of effective tax administration. Following our MOU with the Gambling Division in 2024, we have now formalised further agreements with the Gibraltar Financial Services Commission and the Gibraltar Financial Intelligence Unit. These partnerships align regulatory and enforcement frameworks and support coordinated oversight across sectors.

This is not just administrative housekeeping. It is strategic. It strengthens our capacity to protect the tax base and ensures that the system is both fair and effective.

Madam Speaker, looking ahead, I am pleased to report that the Income Tax Office is making strong progress on a number of strategic priorities aimed at modernising our tax system and reinforcing Gibraltar’s fiscal foundations. The work being carried out, particularly at the international level, is extensive and commendable, and while I would like to elaborate further, time does not permit a full account in this Budget address.

What I can say, Madam Speaker, is that the coming years promise to be transformational. The Income Tax Office is on a clear path to becoming a modern, data-driven authority, fit for the future and ready to meet the evolving needs of our economy.

Madam Speaker, I am proud of the progress made but I must also issue a clear word of caution.

Tax revenues are not a bottomless pit. While this year’s results are historic, they may not be repeated. Economic cycles shift. Global headwinds persist. The sustainability of these revenues depends on continued compliance, prudent management, and, when necessary, tough choices may need to be made. 

Madam Speaker, these are not challenges unique to Gibraltar. Across the world, governments are grappling with the same dilemma and faced with limited options. In many cases, that debate is leading toward higher tax rates. We have done the opposite. We lowered personal tax rates in the last Budget. 

And, of course, Madam Speaker, tax revenues do not grow on trees. There is no magic formula, and there is certainly no guarantee that introducing new or higher taxes would automatically yield the same level of revenues. One need only look at the fiscal debates currently unfolding in the United States and the United Kingdom to see the complexity and indeed the consequences of getting this balance wrong.

Madam Speaker, it is precisely for this reason that we must act with foresight and discipline.

Let us celebrate the success today, yes but let us not mistake it for permanence.

Finally, I would be remiss if I did not take this opportunity to express my deepest gratitude to the exceptional team at the Income Tax Office led by the Commissioner of Income Tax John Lester and very ably supported by his deputy, Julian Baldachino. 

 

Their professionalism, dedication, and hard work is helping to shape a tax system that works not just for today, but for generations to come. 

 

FINANCIAL SERVICES

 

Turning to Financial Services.

 

Madam Speaker, it has been another year of significant change for the team at what has historically been known as Gibraltar Finance, which I will refer to going forward as the Finance Centre Department. 

 

This year, we said goodbye to Mr Paul Astengo, Senior Executive, following many years of dedicated service to Finance Centre Department. I would like to thank Paul for his contributions, most notably in the development of Gibraltar’s Distributed Ledger Technologies strategies.

 

At the same time, Mr Julian Baldachino has been redesignated to discharge the statutory duties of Finance Centre Director, bringing both continuity and renewed focus to the team’s leadership. We have also welcomed Mr Charles Avellano and Ms Kelly Lima, who joined us from the Civil Service and bring a strong background in public administration. They will be working closely alongside Mrs Emma Zammitt, Senior Executive, as well as providing support to strategic initiatives in other Ministries. 

 

The Government has appointed a new team of administrative staff members to the Department.

The three Executive Officers are responsible for managing day to day tasks in respect of the Category 2 and HEPSS applications, as well as the administration of the Ultimate Beneficial Ownership register.

 

Madam Speaker, the Government is investing in the recruitment and development of skilled personnel from within the Civil Service. The recent reorganisation and appointments represents a significant shift toward building internal capacity, with Civil Servants increasingly contributing to the Ministry’s operational leadership and strategic delivery. This approach has also resulted in cumulative savings of £681,000 in staff costs within the Finance Centre Department.

 

On the revenue side, the total income received by Gibraltar Finance under the subhead “Other Charges” in the financial year 2024/2025 stands at over £1,084,900. To place this in context, between financial year 2011/2012 and financial year 2024/2025, the cumulative total revenue under this same subhead is just over £11,000,000 and approximately 75% of that amount has been generated since I took office on 13 October 2023.

 

Madam Speaker, in financial year 2024/2025, the Financial Services sector contributed significant levels of PAYE £24.5m and Corporate Income Tax £43.5m. 

 

Last financial year has been one of delivery, reform and progress for Gibraltar’s financial services sector. I am proud to report that our jurisdiction has continued to advance its reputation as a wellregulated, responsive and innovative financial centre.

 

Madam Speaker, the inaugural Gibraltar Finance Summit in February last financial year was a resounding success. The all-day event at the Sunborn brought together government officials, industry leaders and regulators for the first time ever in Gibraltar and I was also delighted to welcome the Honourable Shadow Minister for Financial Services Mr Clinton. The idea was to provide a space for open discussions about the industry and what changes we should be considering. My intention was to facilitate dialogue, which centred on topics related to competitiveness, regulation and youth involvement. Getting everyone in the local sector into the same room with representatives of Government, private companies and regulators was an invaluable experience. It was a moment of reflection and ambition, a recognition that maintaining our competitive edge will require both introspection and collaboration.

 

The ideas and recommendations from the Summit are being carefully considered as part of our ongoing policy development. It is our intention to make this a recurring event, ensuring that Gibraltar’s evolution as a financial centre is guided not only by Government vision, but also by the insight and experience of those who drive its day-to-day success.

 

Madam Speaker, the Government remains steadfast in its objective to support economic growth across all sectors, particularly those requiring speed to market, while balancing this with the Government’s obligation to prudently manage public finances. 

 

Madam Speaker, I would like to record my sincere thanks to the Gibraltar Financial Services Commission for their professionalism and dedication. I work closely with the CEO Mr Kerry Blight and his team of young and talented individuals (including Mr Julian Sacarello, Mr Jamie Triay Clarence, Mr Julian Warwick and Justin Montovio) whose energy and diligence have been instrumental in supporting our policy agenda.

 

This work is essential in progressing the Gibraltar Authorisation Regime (GAR), which secures our access to the UK market. It is a complex but vital initiative requiring continuous legal and regulatory review. I thank the FSC team, our colleagues in His Majesty’s Treasury and the wider financial services industry for their invaluable input.

 

Madam Speaker, our economic growth continues to be underpinned by the hard work and innovation of Gibraltar’s finance sector. I am encouraged by a rising number of firms choosing Gibraltar as their jurisdiction of choice, drawn by our regulatory quality, legal certainty and access to the UK market. We remain committed to supporting these firms, through both legislative clarity and a skilled local workforce.

 

International Engagement

 

Madam Speaker, Gibraltar’s future depends not just on internal reform, but also on strong external partnerships, particularly with the UK. Over the past year, we have deepened our engagement with UK Government departments and regulatory bodies. These relationships underpin our work in areas such as market access, digital innovation and the fight against financial crime.

 

In April this year, I was invited to speak on a panel at the Commonwealth Trade and Investment Summit. The event was showcased to a global audience and it provided a fantastic opportunity to present Gibraltar’s strengths as a forward-looking, well-regulated finance centre. Our participation in such events is not merely symbolic, it is a statement of our intent to remain visible, vocal and valued on the international stage.

 

Outreach Programme and Stakeholder Engagement

 

Madam Speaker, in addition to our legislative and regulatory reform efforts, I wish to highlight my Ministry’s work in deepening engagement with Gibraltar’s financial and gaming sectors through a comprehensive Outreach Programme.

 

Over the past year, the Ministry has undertaken numerous visits to companies across Gibraltar, including banks, accountancy firms, online gaming companies, insurance firms, investment entities, DLT providers and Companies House. This broad and inclusive approach reflects our recognition that the strength of our economy lies not only in policy alone, but in the lived realities of those who operate within our regulatory framework every day.

 

These visits have been invaluable to the Ministry. They have given us detailed insight into the operational priorities, concerns and ambitions of Gibraltar’s financial sectors. They have also allowed us to identify emerging trends and address industry-specific issues in a timely and informed manner. 

 

Travel Scheme for the Elderly

 

Madam Speaker, as we announced last year, the Travel Scheme for Eligible Elderly Resident Citizens was successfully launched on 8 March 2024, providing an essential solution for elderly citizens who face challenges in securing travel insurance. As of today, the scheme has recorded 3,118 registrations. This shows a continued strong uptake and highlights its ongoing popularity within our community. 

 

I would like to express my gratitude to Mr Karon Cano, Senior Project Manager for the excellent work he has done in assisting me with the implementation of the Scheme, and for the work he is also doing in delivering other strategic initiatives.

 

Youth Engagement and Talent Development

 

Madam Speaker, in supporting the long-term sustainability of our financial sectors, we must invest not only in policy, but also in people. That is why youth engagement has become a growing focus of our work at the Ministry.

 

Over the past year, we have hosted several targeted events driven by the Connect Hub, welcoming students from across Gibraltar’s schools and higher education pathways. These sessions have given young people the opportunity to learn about the finance centre, meet professionals working in the industry and explore the wide range of careers available within our sectors.

 

To date, we have successfully conducted seven workshops. The sessions have covered diverse topics ranging from banking, cryptocurrency and actuarial science to compliance and insurance.

Further workshops are currently being planned to continue this momentum.

 

In addition to these knowledge-sharing initiatives, the Connect Hub has facilitated valuable internship placements both within the private sector and the Finance Centre itself. These placements provide our young people with vital practical experience, helping them make informed decisions about their future careers.

 

Some of these students have since gone on to participate in local industry events, which I have invited them to attend. I am pleased to report that a number have since secured employment within Gibraltar’s financial services sector. This is a clear demonstration of how direct engagement and exposure can lead to real-world outcomes for young people.

 

With the summer period before us, we are actively liaising with industry partners to further expand internship and summer job opportunities for young people. These efforts reflect our ongoing commitment to supporting youth career development through meaningful and sustained collaboration with the private sector and relevant institutions. I can say Madam Speaker, that my Ministry has already taken on 4 students for a summer placement at the Ministry.

 

This work will continue. We are committed to ensuring that the next generation sees opportunity, purpose and ambition in Gibraltar’s financial sectors and that they are given the tools and encouragement to be a part of it.

 

Finance Centre Strategy and Innovation

 

Madam Speaker, we are delivering several strategic initiatives that reflect our ambition to keep Gibraltar at the forefront of global financial services.

 

This year we will be working closely with industry to consider what reforms and enhancement of the Category 2 and HEPSS tax status are necessary to ensure that the regime remains both competitive and compliant with international standards, reinforcing our status as a responsible and attractive jurisdiction for high-net-worth individuals.

 

We will also prioritise the growth and development of family offices as part of our broader financial services strategy. Gibraltar’s regulatory stability, legal clarity and trusted financial services environment are all key factors in its increasing attractiveness for multi-generational wealth management and estate planning structures.

 

We have taken a bold and focused step with the introduction of Gibraltar’s new Digital Clearing and Settlement Framework. This innovative framework allows for the secure, regulated, real-time clearing and settlement of digital assets and is the first of its kind globally. It represents a landmark achievement for our jurisdiction, one that positions us at the cutting edge of global digital finance and further enhances our reputation for regulatory innovation.

 

Moreover, we have continued to advance our work in line with our Moneyval commitments, particularly around the transparency and accessibility of corporate information. The Ministry has led the way in making the necessary enhancements to our Ultimate Beneficial Ownership (UBO) Register, ensuring it continues to meet international standards. Gibraltar was one of the first jurisdictions in the world to introduce a UBO Register and we remain committed to maintaining its integrity and functionality. This work not only reflects our compliance with global expectations, but also our determination to provide a model of best practice for others to follow.

 

Madam Speaker, taken together, these reforms, initiatives and engagements form a coherent and ambitious agenda, one that reaffirms this Government’s commitment to a dynamic, competitive and resilient financial services sector. We continue to look ahead with determination and with a clear sense of purpose to protect Gibraltar’s strengths, pursue new opportunities and deliver a prosperous future for our people.

 

I would like to thank Mr Jonathan Bracken for the legal drafting work he does for the Government. His knowledge of our financial services legislation is second to none and I am very grateful to him for his excellent work.

 

I would also like to thank Mrs Emma Zammitt, Ms Kelly Lima and Mr Charles Avellano and the rest of the team at the Finance Centre Department for their support. 

 

Finally, Madam Speaker, before I turn to Gaming, I would like to thank the Finance Centre Council and the various Working Groups for their time and commitment. 

 

GAMING

  

Madam Speaker, I now turn to the gambling sector.

 

The Gambling Division continues to deliver significant value for money. The Division has 10 staff, including the Gambling Commissioner and, whilst regulating a sector that provides more than 20% of the jurisdictions GDP, operates on a budget of £850,000.

 

There is currently a project in development to start digitalising licensing and regulatory processes. Whilst this will mean some investment in new technology systems, it is not envisaged that the implementation of a new Gambling Act will require significantly more staffing; albeit there may need to be a modest uplift in resources, at least to support the transition process.

 

Direct revenue in terms of gambling duties and licence fees for financial year 2024/2025 was £16,624,340.48 and there were additional regulatory settlements totalling £90,000.

 

Madam Speaker, in financial year 2024/2025, Gaming sector contributed significant levels of PAYE £40m and Corporate Income Tax £110m. 

 

As part of my Ministerial responsibilities, I have promoted a closer working relationship between the Income Tax Office and the Gambling Division, resulting in a Memorandum of Understanding between the respective Commissioners.

 

This year, a new process was introduced as part of the annual licence certificate renewal procedure, requiring operators to produce a certificate of good standing from both the Tax Office and Companies House. This measure serves as an early indicator of broader non-compliance issues and has already contributed to improved adherence to tax and other statutory obligations. Additionally, it enhances assurance regarding the prudential standing and governance standards of licensed operators

 

Many of our licensees have complex cross jurisdictional corporate structures and there is a need to understand the implications of these structures from both a tax and regulatory perspective. Therefore, cross governmental contact including the Income Tax Office, Companies House, UBO register etc. brings benefit to the jurisdiction.

 

Despite ongoing challenges, the online gambling sector continues to demonstrate strong growth in Gibraltar. We have 54 operators holding 83 licenses (49 B2C and 34 B2B).

 

The sector, which is multi-jurisdictional, is facing increasing regulatory and tax pressures in many jurisdictions including in the UK. There continues to be market consolidation and many gambling businesses are increasing automation, harnessing AI developments and bearing down on costs. Merger and Acquisition deals, particularly the merger of 888 and William Hill and the rationalisation of other large businesses has meant that sector employee numbers have reduced to around 3,280 according to latest figures. 

 

Madam Speaker, we have also seen an acceleration of jurisdictions moving to create domestic regulatory regimes for online gambling e.g. Brazil. Unlike some territories, we have taken a position that if a jurisdiction offers an open market and non-discriminatory licensing regime, we expect our operators to apply for those licenses. This has the effect of customers moving off the Gibraltar licence and therefore reducing tax yield, but it is the responsible approach to take.

 

In this context, there has been some inaccurate press reporting that Gibraltar based gambling operators have been involved in illegal gambling supply into Spain. Nothing could be further from the truth. 

 

Pre Brexit and Spanish licensing, our operators did supply gambling services in Spain under fundamental EU freedoms. This is now not the case and operators have taken Spanish licences issued by the Dirección General De Ordenación Del Juego and some have based their Spanish businesses only in Ceuta and Melilla. None of the operators that have been fined or banned by the Spanish regulator for illegal gambling are Gibraltar based and there has been no contact from the Spanish Authorities and there is no intelligence about any illegal Spanish facing websites being operated from Gibraltar. Indeed, if there were it would be an offence and we would move to investigate. Commentary on this issue from certain Spanish sources, at the least, is ill informed.

 

I am pleased to report that the Gambling Bill has been Gazetted and published and is due to be debated by Parliament after the Summer break. Subject to Parliamentary approval it is proposed that the Act will come into force on 1 October 2025 with a transitional period of 6 months. Existing licensees will be grandfathered into the new regime and all individuals or other businesses that fall within the scope of licensing will be licensed by the end of March 2026.

 

I know, Madam Speaker, that there is a lot of work being done in the background by the Gambling

Division. I want to convey my thanks to the Gambling Commissioner and all of the Gambling Division team for their efforts in getting this important legislation done and for the efficient and diligent work they carry out in both the licensing and regulatory areas. I also want to thank Sir Peter Caruana KC, Peter Montegriffo KC, Peter Isola and Albert Isola on the very valuable advice they have provided me and the Gambling Commissioner on the new Gambling Bill.

 

JUSTICE

 

Madam Speaker, I now turn to Justice.

 

Government Law Offices and Office of Criminal Prosecutions and Litigation

 

I start with the Government Law Offices and the Office of Criminal Prosecutions and Litigation.

 

Madam Speaker, the team at the OCPL, aside from dealing with its key function of prosecuting crime at all levels of court, has been involved in, and providing, input and expertise in various areas where policy and legislative amendments have or are currently being considered by the Ministry of Justice, such as domestic abuse and the use of conditional cautions by way of example. 

 

Aside from their work in the courts the OCPL continue to work on several projects in the ongoing and continuing Moneyval process.

 

The department has, as part of GLO, recently conducted a cost saving exercise on its library and expects to substantially reduce its costs this coming year, whilst at the same time maximising the online services available to its Crown Counsels.

 

The OCPL has started once again compiling statistics in terms of all criminal prosecutions and outcomes in the Supreme Court (commencing for year 2024) and Magistrates Court (commencing for the year 2025). This has recommenced with a view to identifying trends and informing the needs of the department and the Criminal Justice system.

 

Legislation

 

Madam Speaker, in the last 12 months the Government has published 25 Bills dealing with a varied areas including Crimes, Financial Services, Proceeds of Crime, Sanctions and Tax. 

 

Since the last Budget around 133 legal notices have been published.

 

The team at the Government Law Offices have also been tirelessly working on the extension of numerous International Conventions to Gibraltar. These include the vital Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism of 2005, otherwise known as “the Warsaw Convention” and the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime of 1990, otherwise known as “the Strasbourg Convention”. These for example required 6 separate Orders to be made and prepared to deal with different forms of requests and investigations. This team is also progressing extension of other conventions including on legal assistance with the Kingdom of Morocco, the Rights of the Child and the enforcement of judgments. 

 

Madam Speaker, an important addition to our enforcement framework has been the introduction of Unexplained Wealth Orders (UWOs) under the Proceeds of Crime Act 2015. UWOs serve as a powerful tool to obtain information that may support civil recovery, assist ongoing investigations, or disrupt serious criminal activity, particularly where assets are suspected to have been acquired through illicit means. To support the effective use of UWOs, a Code of Practice has also been published, ensuring that these powers are exercised in a manner that respects legal privilege, privacy rights, and procedural fairness, thereby enhancing public confidence in the new regime.

 

A bill concerning investigatory powers is now in its final stages and will be brought before Parliament later this year. This legislation proposes the adaptation of the UK’s legal framework governing the use of covert surveillance by public authorities, law enforcement, and intelligence services. It follows extensive work in collaboration with the Office of the Chief Minister, the Office of the Governor, the Office of the Attorney General, RGP, HM Customs, and with expert input from the UK’s former Independent Reviewer of Terrorism Legislation, Lord David Anderson of Ipswich, KBE KC.

 

Gibraltar Law Courts

 

Madam Speaker, notwithstanding a significant and sustained volume of work, the Gibraltar Courts Service continues to operate with dedication and professionalism in support of the judiciary, playing a vital role in ensuring the delivery of a timely and efficient justice system that is accessible to all.

 

At the same time, the Courts Service remains firmly committed to excellence, consistently striving to provide court users with a high standard of service; the daily task of ensuring that three, four or even five or six courts are in session from 10.00 am, while simultaneously maintaining fully operational back-office functions and public facing counters, represents a considerable logistical and operational challenge.

 

This achievement stands as a clear testament to the hard work, commitment and dedication of the entire Courts team, ensuring that such a level of service is achieved, day in and day out.

 

As Minister for Justice, I will continue to work closely with Ms Hazel Cumbo, the Chief Executive of the Gibraltar Courts Service to ensure that the Courts' back office administration is properly resourced. My thanks to Ms Cumbo and her team.

 

His Majesty’s Prison

 

Madam Speaker, in respect of His Majesty’s Prison, I am happy to report that there has been no major incident or disturbance reported to me as Minister for Justice.

 

In 2024, there were a total of 103 admissions, consisting of 92 male prisoners and 11 female prisoners. 9 of the male prisoners where immigration detainees who were later seen out of the jurisdiction. The average monthly population figures for the last financial year stood at 31 prisoners. Once again, no Juvenile admissions were recorded.

 

With regard to rehabilitation, the Prison continues to benefit from the dedicated efforts of professionals who deliver a diverse range of programs aimed at assisting offenders in breaking the cycle of reoffending and reintegrating as productive members of society.

 

Madam Speaker, the facilities at HMP are well-utilised, with 37% of inmates attending educational classes, 63% using the gymnasium, and 39% participating in handicraft programs. Regular counselling sessions and spiritual support from visiting religious denominations further contribute to inmate welfare.

 

The Prison Board plays a vital oversight role through regular inspections and engagement with prison management, ensuring fair treatment and consideration of inmate concerns. The Government extends its gratitude for their dedicated service.

 

Prison management remains committed to its core principles: ensuring safety and humane treatment of inmates, fostering self-respect and supporting rehabilitation aimed at reducing reoffending upon release.

 

I would like to thank the Prison Superintendent Nigel Gaetto and his team. I also want to thank all the members of the Prison Board for their time and the tremendous work they do.

 

Probation

 

Madam Speaker, the Probation Team continues to support Gibraltar’s Courts, Prisons, and Community by working with stakeholders to assist individuals with complex needs and reduce reoffending.

 

In the past year, the team has strengthened its ties with the Community Justice Overseas Territories Network and attended the first Overseas Territories Probation Conference in London, promoting collaboration and sharing best practices. They also participated in the NOTA Conference in Belfast, focusing on the prevention of sexual abuse and violence.

 

The team received further training in risk assessment and plays a key role in the multi-agency management of sex offenders. This work is supported by professional supervision and inter-agency collaboration. 

 

Madam Speaker, I would like to welcome Ms Charlotte Briggs as the new Community Service

Officer. Since she was appointed, she has managed over 5,000 hours of unpaid work Orders since August 2023. The Service has submitted 110 pre-sentence reports and is currently supervising 40 individuals under court or parole Orders.

 

My thanks to Mr Desmond Bell, Ms Jessica Perez and Ms Charlotte Briggs who run our Probation and Community Services. 

 

 

 

Royal Gibraltar Police

 

Madam Speaker, I now turn to the Royal Gibraltar Police.

 

Madam Speaker, the former Commissioner of Police, Mr Richard Ullger retired in March this year after 37 years of service. I would like to take this opportunity to thank Mr Ullger for his many years of service. I would equally like to thank Acting Commissioner Cathal Yates who will also be retiring this year. 

 

Following a competitive recruitment process, on the 2nd April 2025, His Excellency the Governor acting on the advice of the Gibraltar Police Authority appointed Mr Owain Richards as the new Commissioner of the Royal Gibraltar Police. Mr Richards will take up his appointment on the 1st of July 2025 for an initial tenure of four years. I welcome Mr Richard to his new role and I very much look forward to working with him.

 

The RGP Public Protection Unit will soon be moving to new dedicated premises. This will allow them to meet with vulnerable victims and witnesses in a discreet location away from New Mole House Police Station. It is hoped that the office can be expanded to include key safeguarding partners in the future to allow for a holistic approach to protecting the most vulnerable in our community.  By working closer together, the RGP and partner agencies can be both more efficient and effective in keeping Gibraltar safe.

 

2025 saw the RGP civilianise key support roles within our Policing service, this has been a vital step in streamlining resources and ensuring Police officers can focus on frontline duties. 9 new civilian Command and Dispatch Officers successfully completed an intensive 6-week training course. Throughout this programme, they have been taught de-escalation techniques and active-listening skills and have received training on the criminal offences they are most likely to encounter in the control room. Having now taken up their posts on shift, each officer will be mentored in their role, shadowing experienced police officers in the control room before working independently.

 

In parallel, we have recruited 5 civilian Detention Officers, who are currently on a 5-week training course. They will be taught First Aid at Work, Public and Personal Safety Training and the key legislation governing the treatment of detained persons. By civilianising these roles, Police Officers formerly fulfilling these roles will be redeployed where they can have the greatest impact in keeping our communities safe.

 

Madam Speaker, during the financial year 2024/2025, we witnessed significant investment in the professional development of our police officers, reaffirming the Force’s commitment to public safety and excellence in Policing.

 

During 2025, collaboration between the Royal Gibraltar Police and HM Customs has continued, with joint training initiatives focusing on financial crime, cryptocurrency and money laundering investigations. This programme is enhancing officers’ capabilities in addressing complex economic crimes and aligning our practices with international standards.

 

Such investment in specialist training reflects a strategic commitment to ensuring Gibraltar’s security.

 

Madam Speaker, the RGP aims to run consecutive training schools in an effort to restore the Force to full operational strength.

 

The recruitment process for the next intake is nearing completion, with the training course scheduled to commence on 30th June 2025 and conclude in December 2025. Concurrently, the RGP will be processing applications for the next intake, which is currently planned to begin in January 2026.

 

In collaboration with the HeForShe collective and the Women in Policing network, the RGP remains committed to attracting a diverse pool of candidates that reflects the community it serves.

 

Madam Speaker, to enhance frontline response capacity, the RGP has initiated a trial of a new operational structure. Under this system, the existing five Response Teams have been consolidated into four, each operating on a 12-hour shift pattern. This reorganisation has increased the number of Police Officers per shift without diverting resources from other areas of Policing.

 

By distributing the workload across a larger team, the initiative aims to mitigate officer burnout and reduce reliance on overtime to address staffing gaps. The changes have been implemented in consultation with the Gibraltar Police Federation and are consistent with the RGP’s recruitment strategy.

 

Once the force reaches its full staffing complement, it is anticipated that officers will be reallocated to support other key policing functions. Resource deployment continues to be guided by regular assessments, using established tools in accordance with College of Policing standards and UK best practice.

 

I would like to thank the Senior Command Team and all Police Officers and support staff at the RGP. My thanks too, to Mr Callum Bruce and Mr Lee Pozo from the Gibraltar Police Federation for their advice and constructive engagement. 

 

Economic Crime

 

Madam Speaker, economic and financial crime is an emerging global threat and it is vital that our law enforcement partners are equipped to detect, investigate and disrupt illicit financial activities.

 

In my Budget Address last year, I had noted that a Crown Counsel has been recruited into the Economic Crime Unit to assist in their work as well as specialised Financial Investigators; this I noted was in addition to the RGP’s complement of Police Officers. HM Customs Financial Investigation branch has also benefitted from Crown Counsel at the ECU being a shared resource. This has allowed the sharing of best practise amongst the Royal Gibraltar Police and HM Customs.

 

Since assuming office, and throughout the past financial year, my efforts have been directed toward enhancing inter-agency collaboration and dismantling operational silos. A key priority has also been the capacity-building of relevant units. In this regard, officers have undergone specialist training in areas such as crypto asset disputes, recovery and tracing. Additionally, they completed an intensive two-week programme focused on investigating economic crime and money laundering, delivered by two leading UK-based consultancy firms with expertise in policing and investigations.

 

This training has been supplemented by sanctions-related instruction coordinated through my Ministry, as well as specialist sessions facilitated by the Gibraltar Financial Intelligence Unit. These sessions have addressed critical topics including human trafficking, proliferation financing and other emerging threats.

 

All training initiatives, along with opportunities for international collaboration and networking, are made possible through various channels. These include support from my Ministry, individual budgetary allocations within law enforcement agencies and, most notably, the Gibraltar Recovered Assets Fund (GRAF).

 

Established in 2023 by this Government, the GRAF is a dedicated fund created to collect and manage assets recovered under economic crime legislation. Its primary objective is to support and strengthen the efforts of the RGP and Her Majesty’s Customs in the fight against economic crime. It also sends a clear and unequivocal message: Gibraltar is not a safe haven for criminals or their illicit gains.

 

I am pleased to report that these measures have had a significantly positive impact on law enforcement. 

 

The Economic Crime Unit itself has been operating at its largest staff levels since its inception, recently reaching a complement of nineteen, with one of the two police sergeants having since recently left the Unit due to a well-deserved police promotion to Inspector and another police officer moving from the RGP to the private sector. 

 

Madam Speaker, the recruitment of civilian personnel therefore plays a critical role in ensuring business continuity. It also provides much-needed stability to the Economic Crime Unit by mitigating the impact of Police Officers being redeployed to other operational matters within the Royal Gibraltar Police, particularly in situations where the Commissioner of Police considers that operational demands require additional support from other policing units.

 

This underlines the significant challenges faced by the dedicated officers at the Unit, as economic crime investigations remain core policing functions, where civilian support adds value, but the exercise of police powers and judgement remains essential. 

 

To support these efforts further, my Ministry has recruited as a consultant a retired Police Officer who was formerly head of this unit and a Chief Inspector before retiring earlier this year. I am grateful to Mr Tom Tunbridge who will act as a mentor for officers at the Economic Crime Unit and has also been asked to assist HM Customs Financial Investigation branch.

 

In addition, we will continue to bring in civilian support staff into the Unit wherever possible, including by training existing Civil Servants across my Ministries, rather than relying solely on external recruitment.

 

Madam Speaker, there has been notable and ongoing collaboration too between the Office of Criminal Prosecutions and Litigation and the RGP and HM Customs teams in matters relating to criminal restraint and the civil freezing of suspected proceeds of crime. 

 

Madam Speaker, Gibraltar, through the RGP’s Special Branch, has recently joined INTERPOL’s Silver Notice pilot scheme. This initiative is focused on tracing and recovering criminal assets through enhanced information sharing and international cooperation in the fight against financial crime. The Silver Notice enables participating jurisdictions to issue alerts and request intelligence on criminally linked assets, including properties, vehicles, bank accounts and businesses.

 

I would like to thank Chief Inspector Mark Schembri, Inspector Miguel White, Sergeants John Goodson and Albert Loddo, and Crown Counsel Michael Adamberry for the great work that they do with the entire Economic Crime Unit team. For HM Customs, Senior Executive Officer Gaynor Macias moved on to other operational duties this year and is succeeded by Senior Executive Officer John Charles Camilleri, who has hit the ground running; I am equally grateful to them both for driving the HM Customs Financial Investigations team forward.

 

Meanwhile, the Gibraltar Financial Intelligence Unit, Madam Speaker, continues to play a critical role in our efforts to combat money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction.

 

Mr Edgar Lopez and Mr Carl Ramagge have been doing excellent work earning the respect and recognition of their peers internationally.

 

Madam Speaker, this past year the Government has invested and significantly increased the resources of the GFIU with the recruitment of 5 Intelligence Officers last financial year and a further 4 intended for this financial year. The Government has also funded cutting-edge technology, including solutions with artificial intelligence, to increase the sophistication, efficiency and reach of its analytical capabilities. These innovations are not simply upgrades, they are transformative changes that places the GFIU among the most advanced FIUs.

 

On the international stage, the GFIU is now firmly established as a trusted and credible partner. The unit has actively participated in high-level global forums, collaborative projects and knowledge sharing initiatives. Its presence is not only welcomed, but also sought after, by international bodies such as the Council of Europe to provide training to other jurisdictions.

 

Madam Speaker, none of this success happens by accident. It is the result of clear strategic vision, strong leadership and the relentless hard work of a committed team, that I am happy to support. 

 

I want to place on record, Madam Speaker, my appreciation to Mr Edgar Lopez, Mr Carl Ramagge and the rest of the GFIU team for the great work they do both locally and internationally.

 

Gibraltar Coordinating Centre for Criminal Intelligence and Drugs  

 

The Gibraltar Coordinating Centre for Criminal Intelligence and Drugs (GCID) continues to play a vital role in the exchange of information and intelligence with Gibraltar's law enforcement agencies. This collaboration is particularly significant in relation to serious criminal activities, including drug trafficking, money laundering, and organised crime; whether involving individuals or organisations operating within Gibraltar or beyond its jurisdiction but maintaining connections to the territory.

 

The GCID remains staffed with officers seconded from the Royal Gibraltar Police, Her Majesty’s Customs and the Gibraltar Defence Police. Overall command and responsibility for the Centre reside with the Royal Gibraltar Police.

 

My thanks, Madam Speaker, to Sergeant Stuart Manfred and the rest of the team for the great work they do. 

 

Madam Speaker, in summary, the Government has continued to provide full support and assistance to our agencies while respecting and upholding their operational independence.

This balance is essential. It ensures that Gibraltar’s institutions are not only resourced and coordinated, but also free from Ministerial interference. 

 

Moneyval

 

Madam Speaker, I would like to take this opportunity to formally welcome Ms Annette Perales in her capacity as the Moneyval Coordinator Designate. Annette brings extensive regulatory experience within the financial services sector and is at the forefront of ensuring our robust compliance with international standards on anti-money laundering (AML) and countering the financing of terrorism (CFT).

 

Madam Speaker, this year Gibraltar has continued its engagement with what remains a strategically vital process of Moneyval and the FATF. Gibraltar’s aim is to continue to demonstrate not just technical compliance, but the effectiveness of our anti-money laundering and counter terrorist financing regime.

 

Following Gibraltar’s removal from the FATF’s Grey list in February 2024, my Ministry continues to work closely with all relevant stakeholder authorities in preparing for the forthcoming follow-up assessment. 

 

The FATF Standards themselves and the methodology for assessing jurisdictions have been subject to major revisions, increasing the burden of proof for how a jurisdiction can demonstrate its technical and effectiveness compliance with these revised standards. Gibraltar will be assessed by Moneyval, under the revised FATF Standards, in 2027. Our focus this last year has been on consolidating the progress made in addressing key recommendations, particularly those relating to risk-based supervision, beneficial ownership transparency and effective enforcement.

 

Madam Speaker, over the last 12 months my Ministry has overseen the implementation of several enhancements to our financial crime framework. We have introduced Unexplained Wealth Order legislation, streamlined information-sharing across agencies and significantly enhanced the capability of our law enforcement authorities. 

 

Madam Speaker, I have consistently advocated for enhanced coordination across agencies, emphasising the need to move beyond siloed structures on critical areas such as tax compliance, anti-money laundering and counter-terrorist financing and corporate responsibility. 

 

Madam Speaker, on 23 April 2024, the European Parliament failed to ratify the decision of the EU Commission to remove Gibraltar, along with other jurisdictions, from the EU list of high-risk third countries having strategic deficiencies in their regime on anti-money laundering and countering the financing of terrorism. This was a disappointing outcome for Gibraltar, that was not based on any technical assessment.

 

Madam Speaker, as we know on the 10 June 2025, the Commission updated its list of highrisk jurisdictions and Gibraltar was proposed for delisting. The Commission’s proposal reflects Gibraltar’s clear technical compliance and our unwavering determination to uphold the integrity of our financial system. It is a just recognition for the continued work we have been doing, not only to meet but to exceed international expectations. 

 

The European Parliament now has a month from the 10 June, to ratify the decision (or not). 

 

We have supported both resourcing and recruitment of our law enforcement in preparation for the upcoming 2027 Moneyval evaluation. 

 

Alongside our investment in core policing, and as I have mentioned before, the Government has significantly enhanced the capability of the Economic Crime Unit and the Gibraltar Financial Intelligence Unit.

 

Madam Speaker, as I noted last year, and it bears repeating, I fully acknowledge and accept that, over the course of a multi-year evaluation process, individuals, departments and agencies may experience what might be referred to as “transaction fatigue.” This continued level of sustained pressure across multiple agencies presents a genuine challenge.

 

I continue to dedicate a substantial amount of my own time to these responsibilities, alongside my other ministerial duties, Madam Speaker. 

 

Whilst there can be no doubt that the EU political agreement on Schengen represents a hugely important and positive step forward for Gibraltar, its implementation in the context of our forthcoming Moneyval evaluation will not be without further challenge.

This will require new procedures, and potentially additional legislative tools and resources to ensure that operational effectiveness is maintained throughout. And this must be achieved without losing focus on the rigorous and demanding nature of the Moneyval evaluation process itself, which will span many months and assess our performance across the preceding five years.

Madam Speaker, we must therefore be conscious that it can place considerable additional demands on our institutions. 

 

My thanks, Madam Speaker, to Annette Perales, Kevin Warwick, John Reyes, Nicholas Peliza, Andrew Bonfante and all the organisations and individuals that form part of the various working groups, for their continued support in dealing with FATF/Moneyval and Sanctions. Their work helps us all.

 

 

Royal Gibraltar Post Office

 

Madam Speaker, in respect of the Royal Gibraltar Post Office, I am grateful to collective efforts of all postal staff at both the Main Street Office and the Mail Centre. 

 

In response to significant transformations in the postal sector, such as the rapid growth of ecommerce, accelerated technological advancements and heightened consumer expectations, the senior management team is proactively seeking efficiencies. However, over the past year, the Post Office has experienced a number of operational challenges. As a Government, we remain fully committed to ensuring the continuity of this essential public service and minimising any disruption to the community.

 

As I informed Parliament last week, we have taken immediate steps to strengthen staffing capacity by recruiting students to assist during the busy summer period. In addition, we will shortly begin the recruitment of the permanent staff previously announced, in line with our resourcing commitments. 

Following my remarks in this House last week, I also took the opportunity to visit the Postal Office in person together with the Chief Secretary. During the visit, I toured the premises, met with staff, and engaged directly with customers. The feedback from both staff and users was constructive and encouraging.

 

I would also like to thank the Director of Postal Services and his team at the Post Office for their continued support and work. 

 

 

Constituency Office

 

Madam Speaker, I would like to conclude my contribution by talking about a matter that is very dear to me, the work we undertake on behalf of our constituents. I serve as a constituency MP for Glacis Estate, Laguna Estate, Ocean Village and Bayside.

 

The constituency office serves as a critical link between my office and the people we represent. It is where the concerns of families, youth and the elderly are heard and addressed with urgency and care.

 

These Estates are home to families, young professionals, retirees and individuals. Over the past year, the constituency office has remained a pillar of support and service to these communities and especially the people in need.

 

We spend time assisting and supporting people through face to face meetings, community visits and open forums, ensuring that all voices are heard. 

 

Importantly, our office remains open to all. We do not turn anyone away. Instead, we ensure that proper referrals are made where necessary, reflecting our commitment to compassion, cooperation and community-wide support.

 

Madam Speaker, none of these achievements would be possible without the unwavering dedication of the team that supports this office and my colleagues in other Government Ministries. 

 

I wish to express my heartfelt thanks to Ms Joelle Baglietto, Jared Negron and Saskia Fernandez for all their work and dedication.

 

   

Madam Speaker,

Finally, I wish to express my heartfelt thanks to everyone at my Ministry Office, whose unwavering support ensures that I am always well looked after, even in moments of doubt. Public office carries an immense sense of responsibility, and it is important to remember that we are all human.

I am especially grateful to my Principal Secretary, Julian Baldachino, who has stood by me throughout what has been an intense and demanding journey - on Moneyval/FATF, on Justice, on Taxation, and even on more mundane matters, such as those moments when I have forgotten to bring a tie, and he has generously offered me his own.

His professionalism, loyalty to the Crown as a public servant, and quiet strength have been invaluable and I thank him sincerely. 

And to everyone who works closely with me, I would like to take this opportunity to thank their families as well Madam Speaker; their support has been vital. The work we are doing across Ministries inevitably brings added pressures, not just professionally but also at home, and their understanding has not gone unnoticed. Thank you sincerely.