Record year for Savings Bank, Sir Joe tells Parliament

Minister for Economic Development, Sir Joe Bossano, has revealed the Gibraltar Saving's Bank had a record year in 2024, with over £270 million in Economic Development Debentures Sold.

He said he expected this to reach £500 million this year.

In his budget speech, the Father of the House described the Gibraltar Saving's Bank as the Rock's greatest asset.

Sir Joe rebutted the Opposition's Roy Clinton’s claim that the Bank had become a “lender of last resort,” saying that if that were true, it would elevate the Savings Bank to the level of the Bank of England.

A major portion of Sir Joe's speech was dedicated to a fierce defence of the Gibraltar Savings Bank.

He clashed with the GSD’s Roy Clinton over the alleged “subsidy” effect of lower-interest government debentures.

He accused Mr Clinton of financial illiteracy and said the decision to set a lower rate was consistent with the manifesto pledge to build reserves to £100 million by 2027.

In contrast, he accused the GSD of having previously left reserves at just £1.44 and using taxpayer money to subsidise private banks.

Labour Market Restructuring and Self-Sufficiency

Sir Joe revealed that, in contrast to the previous decade, where 87% of new jobs went to frontier workers, recent years have seen 68% of workforce growth come from Gibraltarians.

Between October 2023 and October 2024, Gibraltarian employment rose by 304, while employment of all other nationalities fell by 138.

This, he said, was the clearest indicator yet of Gibraltar’s increasing labour self-sufficiency.

He said the government’s aim is to cap the labour force at around 32,000, shifting away from growth via workforce expansion and toward productivity-driven sustainability.

Trade Treaty and Global Uncertainty

Sir Joe struck a cautious tone on the economic impact of the proposed UK-EU Treaty.

He said while the agreement could bring new market access, particularly for goods via Schengen, he said it could also shift tourism dynamics and does not yet guarantee competitive advantage.

He warned against inflated expectations, noting that the true impact would depend on implementation, pricing, and Gibraltar’s ability to maintain access to both UK services and EU goods markets.

He highlighted a potential influx of investors post-treaty, though many are focused on property development rather than value-added sectors.

He argued that inward investment should be selective and aligned with Gibraltar’s long-term interests, preferring smaller, high-volume service operators with low demands on land and labour.

Sir Joe ended with a bleak reading of the global economic outlook, saying Gibraltar must navigate dangerous waters to maintain its current economic model.