The matter summarized: Mayors from several Norwegian municipalities express concern for the municipalities’ finances and fear that the municipalities are on the brink of collapse. The protests are aimed at the government and in particular the distribution of tax revenue between the municipalities. Several municipalities feel that the money is not enough to cover statutory tasks and offer equal services to citizens. In Larvik, the municipality must save NOK 124 million in 2024, which could lead to cuts in, among other things, cultural services and environmental therapists in schools. Nearly 30 municipalities in Norway are now joining forces for a conference in Larvik on 22 January, where the topic is the skewed distribution of tax income between the municipalities. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. Across parts of the country, mayors have started to shout louder about the consequences of depleted municipal coffers. A proper municipal revolt against “municipal poverty” may be on the way in Norway. And in particular it is the distribution of tax revenue between the municipalities that provokes. At the heart of the rebellion sits the mayor of Larvik, Birgitte Gulla Løken (H). – The reality is that it is not possible to deliver equivalent services when the income is so unevenly distributed, she says. – Could have had a hundred million more In Larvik, they claim that the municipality would have had NOK 111 million more in the coffers if the tax revenue was distributed fairly. Børge Pettersen (left) and his friend Thomas Reine work as packing assistants at a Meny store in Larvik. They fear they will lose the facilitation service they are a part of when Larvik municipality has to cut NOK 124 million. Photo: Philip Hofgaard / news Several municipalities experience the same. The money is not enough. – We can barely afford all the tasks required by law, and then the sensible, preventive work fails, says mayor of Eidskog municipality, Kamilla Thue (Ap). – It is experienced as a brutal reality when we in Sarpsborg have to close nursing home places, at the same time that Stavanger municipality can offer its residents a free bus, says Sarpsborg mayor Magnus Arnesen (H). In Center Party-governed Stjørdal, the mayor believes that the income system needs to be brought more into the light. – Focusing on low-tax municipalities is both important and correct in order to ensure good and equal services, says Eli Arnstad (Sp). The property tax is worth its weight in gold In the Vestfold municipality of Larvik, the politicians will have to use the money-saving knife next year. In several municipalities in Norway, property tax has become a hot topic – to save the budget. Larvik has struggled financially for several years. Now the municipality is talking, among other things, about selling the kindergartens to private parties, the cultural offer will be cut sharply and environmental therapists in schools may disappear. They must save 124 million in 2024. The Larvik mayor has promised the residents to remove the property tax, which became the municipality’s lifeline last year, when the economy was also bad. Kari Reine believes that her son Thomas has greatly benefited from the accommodation offered by Larvik municipality. She fears that it will fail because the municipality will remove the property tax. Photo: Philip Hofgaard / news – An ugly case The big cuts are causing anxiety for many who need help from the municipality. – Please think about what should be cut, says Børge Petter Pettersen, who works as a shopping assistant at a facilitation service in the municipality. The mother of Thomas Reine, one of Pettersen’s colleagues, fears that the offer to her son will deteriorate because the politicians will keep their election promise to remove the property tax. – If the most vulnerable groups have to pay for the waiver of property tax, it is simply an ugly thing, says Kari Reine. The mayor replies that no one should lose the activity offer due to the cuts. Here smoke the election promise In another Vestfold municipality, Horten, the property tax has also become a hot potato – to save the economy. STUPID: – I think it’s stupid that they didn’t make any reservations about the property tax, says Wenche Stenvang on the street in Horten. Photo: Helena Rønning / news Here, the Labor Party promised zero property tax before the election. – Property tax is not an issue, said Arbeiderparti mayor Christina Bratli to news on election night in September. Christina Bratli (Ap), mayor of Horten. Photo: Emilie Lykke / news Lovnaden lasted a couple of months. – I am not proud that we have broken an election promise. We knew that the economy was strained, but we were not fully aware that it was so bad, says Bratli now. – Threat to welfare The mayor of Larvik fears Norway is on the brink of a municipal collapse in Norway if the income system between the municipalities is not changed. – This is one of the biggest threats to the basis of the Norwegian welfare model, and the principle that you should have access to equal services, regardless of where in the country you live, says Gulla Løken. – Important commitment Municipal and District Minister Erling Sande (Sp) says it is correct that there are differences in the municipalities’ tax revenues, and that around 300 municipalities have tax revenues per inhabitant below the national average. – To take care of the tax-weak municipalities, we have a system for equalizing tax income, he says to news. Erling Sande (Sp), municipal and district minister. Photo: Ina Marie Sigurdsen / news – It is important and quite natural that the municipalities get involved now that we in the government are working on a new revenue system for the municipalities. According to the minister, the clear goal of the Center Party and Aps is to ensure a fairer distribution. – I experience this commitment as a clear signal of support for the direction the government has pointed out. He believes that the finances of Norwegian municipalities are basically good, but that there is a big rift in the municipal team. Among other things, due to cost growth, increased interest expenses and corona handling. – We are very aware of this, and that is why we in the Center Party and Ap have a goal to equalize more of the differences to ensure that all Norwegian municipalities can offer good and safe services for their residents. The municipal revolt against low incomes Nearly 30 municipalities in Norway are now joining together for a conference in Larvik on 22 January, where the topic is the skewed distribution of tax income between the municipalities. Almost 30 municipalities are behind the initiative for the conference: Holmestrand, Færder, Tønsberg, Sandefjord, Horten, Larvik, Porsgrunn, Skien, Siljan, Drangedal, Bamble and Kragerø, Eidskog, Kongsvinger, Grue, Nord-Odal, Sør-Odal and Åsnes, Drammen , Kristiansand, Sarpsborg, Lillestrøm, Harstad, Søndre Land, Stjørdal, Kinn, Ålesund, Rana and Haugesund. Over 300 municipalities have been invited to an appeal against poor municipal finances. In the petition, they believe that over 300 of the country’s municipalities come out worse than the national average when the tax income is distributed.
ttn-69
Fears Municipality-Norway is on the brink of collapse – news Vestfold and Telemark – Local news, TV and radio
