The economic situation will continue to be tough for some time to come, says Finance Minister Elisabeth Svantesson (M). But it is not pitch black and the Moderates are pushing for tax cuts.
At the same time that regions and municipalities are clamoring for more money to cope with cost increases, the finance minister does not rule out that there may also be room for municipalities to lower taxes.
– If you have the opportunity to lower taxes and are a well-run municipality and can manage to have high quality. Then you have succeeded well. So why not?
Sweden is plagued by high inflation and the purchasing power of Swedish households is failing. High interest rates and rising prices have become a toxic cocktail that leaves many families in the red at the end of the month.
Finance Minister Elisabeth Svantesson wants to compensate for that, if not now as soon as possible. On the agenda are tax cuts for low and middle income earners.
Previously, the finance minister did not want to give any information about when a tax reduction on work could be introduced, now she is clear that it will take place next year or the year after.
– The wage earners have been hit hard by the high inflation. Many of our support systems, guaranteed pension or support, have increased and been written up with inflation while wage earners have seen their purchasing power hollowed out. We see a need to support households with reduced taxes. Then whether it will be in this budget or the next one, we will have to come back to, says Elisabeth Svantesson when Aftonbladet meets the prime minister in Almedalen on Gotland.
“I don’t feel stressed”
Aftonbladet has previously reported on the internal criticism of the party leadership that exists in the Moderates and which, among other things, concerns the pace of reform in the government – not least when it comes to tax cuts and job tax deductions.
Now it looks like there will be an answer from the finance minister that the government will lower the tax in the near future.
– One reform at a time and everything has its time, but of course we want to lower taxes for people who work. Especially now considering that inflation has made many poorer, says Elisabeth Svantesson.
Are you feeling stressed that tax cuts have not yet arrived?
– I don’t feel stressed. I am completely focused on getting us through this difficult situation. When we have inflation that just has to be fought, then the restrictions are greater, we must be restrained. Then we can’t do everything at once. But that we should lower the tax, we agree on that.
On Friday, Elisabeth Svantesson will give her new assessment of the economic situation in Sweden. She doesn’t want to mention any figures at the moment, but in general it still doesn’t look so dark, says the finance minister.
– Although we have high unemployment in relation to many other countries in Europe, the labor market is strong in many ways. Both GDP outcomes and labor market outcomes have surprised on the upside. The forecast we have is that unemployment will increase, but we do not see a huge increase in unemployment.
The message now is that the state cannot compensate for everything, but what do you say to families who are on the edge now financially?
– I see it. I talk to a lot of people who are having a tough time. It will be tough for a while. That is why fighting inflation is so incredibly important, but I will not leave the most vulnerable households in the lurch.
“Harmful to raise taxes in this situation”
The pressure on the government to act so that welfare is secured when the economy is struggling has increased. Several regions and municipalities have warned of major cuts ahead of next year, if the state does not come to the rescue with more money.
The Minister of Finance believes that regions and municipalities should partially cover the costs by using the surpluses built up in previous years.
The remaining part must be covered by the state. The finance minister does not yet want to say how much money is involved. The reason is that she wants to wait for as recent figures on the economy as possible in order to make the best possible assessment. In August, the Ministry of Finance makes a final assessment that forms the basis of the budget negotiations between the Tidö parties.
– It is moving matter, says Elisabeth Svantesson.
The Minister of Finance calls on municipalities and regions to prioritize and streamline in order to cope with the strained financial situation. She would rather not see municipalities raise taxes to cover the cost increases.
– It is harmful to raise the tax in this situation, but each municipality has its own decisions to make.
Elisabeth Svantesson does not question lowering the tax, given that the quality of welfare can also be secured.
– If you have the opportunity to lower taxes and are a well-run municipality and can manage to have high quality. Then you have succeeded well. So why not? But most people struggle with the thought of raising taxes.