– Oslo municipality is in a very serious financial situation, says city council leader Eirik Lae Solberg (H). – We are facing an economic turnaround that we have not seen since the 90s, he adds. The city council leader meets news together with finance councilor Hallstein Bjercke (V). Two seriously burdened municipal leaders come with what they themselves describe as a storm warning to the population and employees. Three shocks at once – In many ways you can say it’s a triple shock, says Bjercke. The Finance Agency’s three shocks are these: Difficult economic times in society in general with, among other things, high interest rates, high inflation and increased social assistance expenses. That the government has deprived Oslo of tax revenue. That the previous city council, according to the current one, has lived beyond its means. – The three shocks come at once. We must adapt to them, and we must do so now. The longer you wait, the tougher and harder the means you have to use, says Hallstein Bjercke. No areas are shielded Already in May, Oslo City Council’s leader and deputy leader were out and said that dark clouds threaten. Now things are brewing for a storm. Next year’s Oslo budget will be presented on 25 September. On Thursday and Friday this week, the city council is gathered for the last budget conference. – All the city councils have received a clear message to thoroughly review the spending of money in their sectors and propose cuts. – We are not in a situation now where the discussion is who will get the biggest bonuses. The situation is that everyone has been told to propose cuts. No areas are shielded from this discussion, says Eirik Lae Solberg. More billions The two say that Oslo must cut several billions over the next few years. They will say how much must be taken next year and who it will affect when they present the budget. The aim is to make it as gentle as possible for the residents. – But when there are such large cuts, it will be felt, says Eirik Lae Solberg. – Do you have to break election promises? We still have the ambitions in the Hammersborg declaration. We have no intention of canceling them now. But then there is no doubt that the prerequisites for making it happen are different now than when we sat and negotiated the city council’s declaration, says Hallstein Bjercke. – Blame everyone else The Labor Party’s group leader Marthe Scharning Lund believes the city council can thank itself. – The storm the Conservative city council is warning of has been set in motion by themselves by making far too many expensive and unrealistic promises in the election campaign. – That they are trying to paint a picture that the red-green city council had no control over the economy falls on its own unreasonableness, she says. The leader of the opposition in the city council believes that the city council is running a campaign where they blame everyone else. Instead, they should say that of their own free will they will cut NOK 1 billion in income from the property tax on the most expensive homes, she believes. TOTALLY IRRESPONSIBLE: The city council gives up 1 billion of its own free will, points out Marthe Scharning Lund. Photo: Hallgeir Braastad / news – Tax cuts irresponsible Marthe Scharning Lund says that we already see that there are major shortcomings in welfare in the city. She mentions, among other things, that the elderly have to wait 18 months for a care home, that the school meals for 38,000 pupils have been removed, and that there is a huge need for prevention among children and young people. – In that situation, it is totally irresponsible to force through an almost sacred promise to cut property tax, she says. PROPERTY TAX: Property tax is an eternal source of discussion in Oslo. Photo: NTB When will the treasure disappear? A quarter of the property tax on housing was cut in the budget for the current year. Hallstein Bjercke and Eirik Lae Solberg say that the goal is still to remove the entire tax on housing during the four-year period. – It is very expensive to live in Oslo. It is an anti-social tax that is neither assessed on the basis of income nor other assets. – So it is too early to say how much and when, says the city council leader. – Does that mean that it is not certain that you will manage to take a quarter each year? – We will return to that when we present the budgets. But what we do in various areas will have to be adapted to the economic situation, says Eirik Lae Solberg. Published 30.08.2024, at 06.14
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Oslo City Council announces several billion in cuts – Greater Oslo
