On Friday morning, the government presented new measures to stimulate the economy in the prolonged recession.
The biggest investment is to temporarily raise the ROT deduction from 30 to 50 percent. The increase starts to apply on May 12 and costs SEK 4.35 billion.
The hope is that households will implement, and possibly an early place, renovation projects.
And the message is received with pleasure in the construction industry.
– I think it sounds superb. We work super very much with private individuals so it has a crucial role in the ability to order jobs and put us in employment, says Tobias Gardebrink, CEO of the service company Pro VVS in Stockholm.
Bygg-CEO: “Changes the industry”
He believes that the immediate effect will be greater demand.
– I think it will lighten up for many, that we get an increased number of requests and can start looking at attracting new talents and starting to put people into work, he says and continues:
– I welcome it with all my heart.
Dejan Nenadovic, CEO of the Malmö company Byggfavoriten, agrees. He was pleasantly surprised when he heard the government’s message.
– I imagine that there are many customers who hesitate to renovate who may now decide to do so because you get more deductions, and it will be cheaper.
Although the crisis in the construction industry has not hit very hard on his own company, he has noticed that competitors have gone bankrupt.
– It changes the industry in its entirety. Smaller companies will have more to do and do better. It’s just good with some competition too.
According to Tanja Rasmusson, business policy manager at the industry and employers’ organization Byggnadsenen, the increased ROT deduction is a first step to save the jobs in the construction industry.
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She is convinced that the construction companies around Sweden feel both relief and joy.
– Every craftsman who can retain their job and every small business owner who can not be notified and not to go bankrupt is counted in this situation, she says.
She describes the crisis as depth.
-We have not seen this loss in housing construction since the 1990s crisis. And this has enormous effects for both individuals’ income and employment but also for opportunities to build Swedish society and Rusta Sweden.
– The root deduction is a good measure to save employment temporarily. But it is not the measure that will ensure that the new construction takes off again in Sweden and that is the real problem.