Sacarello urges Govt to bolster business support measures 

GSD MP Craig Sacarello called on the Government to revisit and strengthen the support measures it announced this week to help businesses prepare for the UK/EU treaty on Gibraltar, warning that the package appeared “rushed” and would not be enough for firms facing long-term cost pressures. 

Mr Sacarello told Parliament that a serious debate had to start with “an honest assessment” of both the advantages and the costs of the treaty, acknowledging that a solution was needed and that the alternative would be a hard border with immediate consequences for Gibraltar’s economy and labour market.  

But he said approval could not simply be reduced to relief that a worse outcome had been avoided, arguing the treaty “contains sacrifices” and creates new legal and regulatory commitments that required scrutiny, particularly for the business community.  

At the top of his concerns was the Government’s mitigation package for businesses affected by the new transaction tax and related compliance changes.  

Mr Sacarello said the measures would be received with “guarded approval” but described them as insufficient, warning that many firms would face “not short-term pain, but chronic pain”.  

He said the relief offered would not meaningfully help businesses already under strain and argued that some measures would only assist companies making substantial profits, leaving struggling firms without support.  

He urged the Government to amplify the package to make a “meaningful difference”.  

Mr Sacarello said the absence of detailed public analysis made it harder for Parliament, businesses and the public to judge whether the treaty’s economic gains outweighed the trade-offs.  

He said the Opposition had repeatedly asked to see any economic impact assessments prepared by the Government and challenged its position that such work could not be shared because of sensitivity.  

He also criticised the absence of a clear post-negotiation assessment setting out sector-by-sector impacts, methodology and fiscal consequences for public revenues and expenditure.  

The GSD MP pointed to warnings from business organisations that said the “risk to the continued viability” of some members had increased “materially”, adding that this underlined the need for structured engagement and lawful support mechanisms.  

Beyond economics, Mr Sacarello raised concerns about identity and operational control.  

He said the treaty risked shifting Gibraltar’s commercial landscape away from long-standing British supply chains and brands due to tariff effects, with potential knock-on cultural implications due to a “predictable substitution effect” favouring EU products that would be easier to import. 

Mr Sacarello also focused on the issue of “boots on the ground”, contrasting previous Government statements rejecting any Spanish law enforcement presence with the treaty framework that he said would allow armed Spanish officers to operate in Gibraltar in defined Schengen-related circumstances.  

He said the practical reality and parameters needed to be clearly defined to avoid misunderstanding or provocation.