GSD says ‘huge’ increase to social insurance shows ‘dire state’ of public finances

The GSD said “huge” hikes to social insurance announced by the Gibraltar Government last week were punitive on businesses and pointed to the “dire state” of the Rock’s public finances.

The increases were announced in a statement which the GSD said “disguised percentage increases” ranging from 20% to 107%.

“This can only reflect the dire state of our public finances and coming ahead of the Budget debate in July is not a good omen,” said Roy Clinton, the GSD Shadow Minster for Public Finance and Small Businesses.

“This increase should have been properly announced in the Budget session by the Chief Minister and comes as a complete shock.”

“I doubt whether there has been any prior consultation with the business sector as to the affordability of these increases as they are still trying to recover from the effects of Covid.”

“Not only is it punitive on businesses that need breathing space in the current economic climate but it is a tax on jobs and a disincentive on the creation of further jobs which makes no sense.”

“The wording of the Government press release disguises the percentage increases that have been put through that range from 20% to 107% hitting the lowest paid on minimum contributions the hardest.”

“This is the price our community has to pay for this Government’s mismanagement of our public finances.”