PARLIAMENTARY DEBATE
Gibraltar - 12 June 2025 (Commons/Commons Chamber)
Debate Detail
With permission, Mr Speaker, I will now make a statement on Gibraltar. Yesterday, the United Kingdom reached a political agreement with the European Union on the last major unresolved issue from our decision to leave the EU, providing much-needed certainty for people and businesses in Gibraltar. The deal removes another obstacle to closer ties with our EU friends and, crucially, protects British sovereignty over the Rock.
The need for this deal is well understood. As Members across the House have often highlighted, the current situation is not sustainable. Every single day, approximately 15,000 people—half of Gibraltar’s workforce—cross the land border with Spain to do their jobs, and to buy goods and services. Without a solution, the EU’s incoming system of entry and exit controls would have introduced a hard border, at which every individual’s passport would be checked, and all British goods heading for Gibraltar’s supermarket shelves would be subject to time-consuming customs checks. That would cause chaos and backlogs, endanger the livelihoods of British citizens in Gibraltar, wreck the territory’s economy and possibly cost it hundreds of millions of pounds a year, and place pressure, ultimately, on the UK taxpayer to pick up the bill.
All my predecessors since the referendum have had to wrestle with the looming threat to Gibraltar’s economy and way of life. These issues were, regrettably, left out of the EU exit negotiations. The previous Government began further talks to address them in 2021, when the former right hon. Member for Esher and Walton was Foreign Secretary. The issues were taken forward by the right hon. Member for Braintree (Sir James Cleverly), and the noble Lord Cameron of Chipping Norton came close to reaching an agreement. I pay tribute to their efforts, and to them for briefing me on Privy Council terms when I was in opposition.
It fell to this Government, when we came into office last year, to get a deal over the line, and it was imperative that we did. Gibraltar is part of the British family. Its people are British citizens. Its military facilities are of the utmost importance to Britain’s security, protecting important global trade routes in volatile geopolitical times. Britain is safer thanks to the work of our armed forces on the Rock. Since coming into office, therefore, we have made it a priority to negotiate a lasting solution with the European Commission and Spain.
I acknowledge the role of the Minister for Europe, North America and the Overseas Territories, who, in opposition and government, has been a relentless advocate for the people of Gibraltar, and has been integral to finding a mutually beneficial way forward. I also thank the Minister for the Armed Forces, as well as the dedicated team of Foreign Office diplomats for all their efforts, led by Lindsay Appleby in Brussels and Robbie Bulloch in London; their negotiating skill and deft diplomacy have been in the finest tradition of our diplomatic service.
British Ministers and officials have worked hand in glove with the Government of Gibraltar to conclude these tricky negotiations. Chief Minister Fabian Picardo has been at the table at every single stage of the process. Yesterday, he welcomed me to Gibraltar before we travelled together to Brussels to conclude the talks—as he said, as “a united British family”.
This Government would never agree to any solution that did not have the full support of the Government of Gibraltar—nothing about Gibraltar without Gibraltar. The Chief Minister has said that what we have agreed is
“something remarkable…Something bold. Something forward-looking and hopeful.”
I pay tribute to all those whose tireless efforts have helped to get us here. We have protected Gibraltar’s sovereignty, economy and way of life for the long term. Since 2021, this and previous Governments have been involved in 19 formal rounds of talks and countless technical discussions, sherpa meetings and ministerial calls—it was a massive collective effort—to ensure that Gibraltar could continue to prosper.
We have agreed a unique and practical solution to the problem facing Gibraltar, the only British overseas territory that shares a border with the EU’s visa-free Schengen area. Its people’s livelihoods depend on a fluid border. Our solution will deliver jobs, investment and stability, not just for Gibraltar, but for the entire region. British sovereignty over the whole of Gibraltar, including British Gibraltar territorial waters, remains sacrosanct and iron-clad. On starting talks, I immediately secured an agreement to add a clause explicitly protecting our sovereignty, and the same goes for British Forces Gibraltar, which will continue to operate without interference or interruption, exactly as it does today.
Traffic at the border between Gibraltar and Spain will be able to flow, without checks on the people crossing. Residents of Gibraltar and of nearby Spanish communities will be able to go about their daily life, as they have done. For those arriving by air at Gibraltar’s airport, there will be dual border control checks—a model similar to the one whereby French police operate in London’s St Pancras station. Ignore the fake news: Gibraltar will not be joining Schengen. That was never on the table. Immigration, policing and justice in Gibraltar will remain the responsibility of Gibraltar’s authorities.
As for products entering Gibraltar across its land border, there will be a unique goods and customs model, avoiding the need for onerous checks at the border. With this pragmatic solution, flights will be able to operate from Gibraltar airport across Europe, driving growth and jobs for the people of Gibraltar.
This Government are showing that a pragmatic, positive relationship with the European Union pays off for the British public. Just as at the UK-EU summit last month, we are solving the problems left by the previous Government and their thin Brexit deal, and are making working people across the British family safer and better off. We can now also strengthen our co-operation with Spain, our NATO ally, a place that British people know so well.
I am grateful to my counterparts in Spain and the EU for completing these negotiations in good faith, in the spirit of win-win solutions for all parties involved. This agreement paves the way for finalisation of the UK-EU treaty text on Gibraltar. All parties have committed to completing this as quickly as possible. I can reassure hon. Members that the House will have the opportunity to scrutinise it in the usual way. I hope that Members from all parts of the House take this matter with the seriousness that it deserves and back the solution that Gibraltar’s Chief Minister and I have come to, guaranteeing Gibraltar’s sovereignty, economy and way of life.
This is what competent government looks like: fixing problems, not creating them; standing up for our overseas territories, not leaving them exposed; and protecting Britain’s interests abroad, to ensure security and growth at home. With this agreement, Gibraltar will have easier access to the European economy. Its businesses can plan for the long-term once again, and its citizens can feel reassured about their future. Britain’s commitment to Gibraltar remains as solid as the Rock itself. I commend this statement to the House.
On the statement, I pay tribute to the Chief Minister of Gibraltar, Fabian Picardo, and his team for the constructive way they have approached this issue. They worked constructively with Ministers in the previous Conservative Government to set out the negotiating position and red lines, the UK having recognised the choices that Gibraltar made in its interests.
The Chief Minister stated in a letter to the former European Scrutiny Committee that
“the UK and Gibraltar have never worked more closely together in delivering the outcome that the People of Gibraltar want”.
As my noble Friend Lord Cameron of Chipping Norton said when he gave evidence to the Committee last year:
“Fabian Picardo and I are joined at the hip: we will not agree anything that we are not both comfortable with.”
The Foreign Secretary has acknowledged his predecessor’s work and taken time to reflect on it and secure this outcome. Will he also acknowledge that this negotiating process has been frustrated by Spain, which, as we know, blocked these issues from being resolved through the Brexit negotiations?
His Majesty’s Opposition will judge the deal agreed on whether it meets the aims and objectives that we outlined when in government with Gibraltar and once we see the full details. Our principles have been that nothing compromises or infringes on the sovereignty and constitutional arrangements of Gibraltar, which is to remain British. We believe that we must able to operate our base as we have done to safeguard our defence and interest, and that the deal must be backed by the Government of Gibraltar and Gibraltar’s people to support their interests. It must also address the concerns about the actions of Spain to frustrate and prevent the free flow of goods.
I heard what the Foreign Secretary said in his statement and in the joint statement from the Government of Gibraltar, the UK Government and the EU Commission. I have the following questions. Can the Foreign Secretary confirm when the House will get to see the full details of the deal and the treaty? In a letter to the House of Lords International Agreements Committee, the Minister responsible for the Indo-Pacific, the hon. Member for Hornsey and Friern Barnet (Catherine West), commented on the benefits to scrutiny of sharing the initial treaty text in advance of its being laid formally. Given the importance of the issue, will the Foreign Secretary make a draft available to the House before signing, and will he commit to make parliamentary time available to debate the treaty?
Can the Foreign Secretary confirm whether the red lines that the last Government set with the Government of Gibraltar have been met or whether, during the negotiations and since he took office last year, there has been any divergence from them? Can he give assurances that under this deal we will see a stop to the games that have been played by the Spanish that disrupt the border and the freedoms that Gibraltarians should enjoy? They cause disruption in the EU, so has he received commitments from Spain and the EU that this will never happen again? With in excess of 15,000 people crossing the border every day, it is vital for economic interests that a fluid border, which Gibraltar wants, is in place. That is why when we were in government we respected the choice of Gibraltar to work to achieve this.
No mention is made of the military base in the joint statement, but the Foreign Secretary has referenced it. Can he confirm that nothing will be agreed that infringes on our ability to operate the base, and will members of our armed forces be able to access Gibraltar without needing Schengen checks? On the juxtaposed border controls, can he give more details about their practical operation and explain to the House how they will work? Can Spanish officers stop a British citizen from coming to stay in Gibraltar? Will British citizens’ time staying in Gibraltar count against the 90-day Schengen limit?
Finally, the joint statement issued lists areas that the agreement will include, covering state aid, taxation, the environment, transport, the rights of frontier workers, social security co-operation and financial mechanisms on training and employment. However, there is a lack of detail. When will the details come forward, and when will we be able to scrutinise them? Does this put Gibraltar in a customs union with the EU? What does this mean for VAT? Will there be any provisions that will require Gibraltar or the United Kingdom to pass legislation, including to enact any EU law? Conservatives will always defend British sovereignty and the rights of Gibraltar, and we will continue to scrutinise the details of this deal so that nothing undermines this.
May I be clear that the military base will continue to operate as it does today? There will be zero change. It is vital for UK national security, and it is protected by this agreement. That was a red line for us throughout the negotiations.
The right hon. Lady asks whether the arrangement changed with the change of government. On the red lines that were set out by the Gibraltar Government, the answer is no. The only thing that changed was that I insisted that there was a sovereignty clause, which she will see when the treaty is published.
The right hon. Lady asks how quickly we will be able to share the treaty. We hope to do so as quickly as possible. She will recognise that there is a lot of technical detail. Work is ongoing with lawyers to draft the treaty, and between the European Union and Spain to ensure that the language in it is aligned, but we will get to that point as quickly as we can.
The right hon. Lady asks about parliamentary scrutiny. I assure her that we will follow the Constitutional Reform and Governance Act process, as is right. Parliament will be able fully to scrutinise the treaty, and to debate the terms of the treaty if it wishes, as she would expect.
The right hon. Lady asks about Schengen. As I said in the statement, this was never on the table. I give her the assurance that immigration, policing and justice in Gibraltar will remain the responsibility of the Gibraltar authorities.
The right hon. Lady asks about VAT. I assure her that Gibraltar will not be applying VAT and will maintain its fiscal sovereignty.
The right hon. Lady asks about the 90-day rule. Because there will, in effect, now not be checks at the land border, it is right that Gibraltarians can come and stay as long as they want. But for those who are travelling into Gibraltar from Spain, or those who are arriving in Gibraltar at the airport, I can confirm that the 90-day rule will apply across both Gibraltar and Spain.
I recognise that these questions touch on the issues that dominated this House following the decision to leave the European Union, which was, of course, a decision that divided the nation. But this moment, this deal and this arrangement, for which Gibraltar was in the room, represent a conclusion to that period. I am very grateful for the tone that the Official Opposition have taken.
The Foreign Secretary talks about our scrutinising this matter in the usual way under the CRaG process. I have to say that I think the CRaG process is rubbish, and I ask him to look again at, in essence, our having the right, as opposed to being given it by largesse, to debate and vote on a treaty. The requirement is that the Government lay before Parliament a treaty, which this House may resolve not to ratify during a 21-day delay. How that is done, I frankly do not know, because it has never been done, but it could, in theory, result in a delay of 21 sitting days. In many cases, it would be not so much ping-pong as hoofing the ball up the pitch again and again. The CRaG process is obscure and out of date. It is basically the Ponsonby rule, and it is unfit for the 21st century and unfit for this place. I ask the Foreign Secretary to look at it again.
I thank the Foreign Secretary for advance sight of his statement. The Conservatives’ botched deal with Europe left Gibraltar in a state of limbo for years. Our hope is that this new agreement will work to the genuine benefit of Gibraltarians, leaving no lingering questions over the status of Britain’s sovereignty of the territory and our commitment to the self-determination of Gibraltarians.
There are a number of vital principles at stake. To ensure that the deal effectively secures the future of the Gibraltarian economy, it is vital that Parliament is given the opportunity to scrutinise the details of the agreement and vote on it. Will the Minister therefore commit to bringing the deal before the House for a review and outline when MPs can expect to vote on it? It is also vital that the Government provide further clarity on the timeline for implementing the deal. Will the Minister therefore confirm whether a provisional date has been agreed for its implementation and whether that timeline provides enough of an opportunity for parliamentarians to provide adequate scrutiny? Another principle is that nothing about Gibraltar should be agreed without Gibraltarians. Will the Minister provide further details on what steps have been taken to consult them, including representatives of business, to ensure that their interests have been front and centre in the negotiations?
The Spanish Government have been willing in the past to act unilaterally over Gibraltar and to the detriment of Gibraltarians. Will the Minister outline what mechanisms will exist in the deal to ensure compliance and effective dispute resolution in the event of future possible unilateral action, thus giving confidence to Gibraltarians that the deal will be enforceable? Finally, will the Minister confirm the lifespan of the deal and whether it will include an opt-out clause, ensuring the ultimate guarantee of Gibraltar’s sovereignty?
The hon. Lady asked about business. I assure her that I was with representatives from the business sector in Gibraltar yesterday morning discussing what a deal would mean for them if it were reached later in the afternoon. There was one word that they kept coming back to: certainty. They wanted certainty, and they wanted the opportunity of a more frictionless border arrangement with Spain and the opportunity to sell into the Spanish market unhindered. That is what they said and that is what we particularly took on board.
The hon. Lady rightly asked about any ability to thwart the deal that might exist in parts of the Spanish parliamentary system. May I remind her that the deal, appropriately, is between the United Kingdom and the European Union, that we have always been a country that meets our treaty obligations seriously and that whatever one’s views about the European Union, it is also an organisation that meets its obligations seriously? When we sign up to a treaty, that is what we are doing. As with the trade and co-operation agreement, there is a review mechanism that would allow the appropriate review; indeed, the UK-EU summit that we had a few weeks ago was an appropriate review. However, we met our obligations under the TCA in opposition, standing up for the agreement that had been struck by the last Government, and we would expect the same in this instance.
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.