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The key policies from Norway’s new government that you need to know about

Norway’s incoming government on Wednesday presented the key policies and proposals it will plans to implement when it takes over the reins.

Published: 13 October 2021 17:41 CEST
Updated: 16 October 2021 09:10 CEST
The governments policy platform has been revealed. Pictured is a statue outside of Norway's parliament.
The governments policy platform has been revealed. Pictured is a statue outside of Norway's parliament. Photo by Arbeiderpartiet on Flickr.

On Wednesday, Labour leader Jonas Gahr Støre and his counterpart from the Centre Party, Trygve Slagsvold Vedum, unveiled their government policy platform. 

“Now Norway will have a government that will listen to the people. We will not overtake people but work to reduce the differences socially and geographically,” Vedum told the press at the reveal. 

The incoming government will pursue tax cuts for lower earners, cheaper childcare and more affordable electricity. 

Tax cuts (but not for everyone) 

The government wants to reduce income tax for those on incomes less than 750,000 kroner per year. This was a key promise that the Labour Party made throughout the election, and the Centre Party also said that it wanted a tax cut. 

Whether the tax cut will be in addition to the proposed bracket tax cuts for those on low-to-middle incomes the outgoing government announced on Tuesday remains to be seen. 

READ MORE: How Norway’s proposed state budget for 2022 could affect your finances

While those on lower incomes may pay less in tax, higher earners can expect to be taxed more. 

Working life

The incoming government wants to tighten the Working Environment Act to improve working conditions, cut down on the number of temporary positions, and regulate the staffing and recruitment industry more closely.

Other tax changes

There will be other changes to taxes, including bad news for anyone hoping to purchase an electric car soon. 

VAT will be applied to new EV’s sold for more than 600,000 kroner, while the new minority coalition proposes lowering deductibles on the wealth tax to ensure the wealthiest in society pay more. 

EEA and immigration 

The eurosceptic Centre Party is a vocal critic of Norway’s membership of the European Economic Area or EEA. Before the election, it said it wanted to regulate labour immigration and pull Norway from the Schengen agreement renegotiate with the EEA. 

The new government has said it will remain part of the agreement, but it will be examined and investigated to see whether there is any room to manoeuvre within it. This will come as a relief to many foreign residents in Norway, knowing their right to live and work in Norway will be protected. 

More affordable childcare

The maximum price for kindergarten places will be lowered during 2022, and families won’t have to pay for a third child to attend at the same time as their siblings. 

In addition, the two parties have agreed to gradually introduce a healthy daily meal into schools and more daily physical activity. 

Free afterschool activities for all first-graders could also be implemented, although there are currently no details on when this could happen. 

Cheaper electricity 

More affordable power is also on the agenda. The coalition has promised to lower taxes on electricity, increase housing support and introduce a geographical price equalisation of grid rent. 

READ ALSO: What are the knock-on effects of rising energy prices in Norway?

This is as well as strengthening consumer rights, increasing the output of Norwegian energy and ensuring no new cables transferring power are constructed. 

Climate

The government will continue looking for oil in new areas, a policy point that caused the Socialist Left Party to leave negotiations to be part of the coalition. 

Despite that, there’s still green policy. Norway’s CO2 tax will gradually increase to around 2,000 kroner per tonne by 2030. Greenhouse gases will be cut by 55 percent by 2030 compared to 1990 levels, and this obligation will apply to sectors of the economy subject to climate quotas. This will bring Norway in line with EU climate targets. 

READ MORE: New Norwegian government outlines climate ambitions despite commitment to oil

Healthcare

Ullevål hospital will be closed and replaced by new hospitals at Gaustad and Aker that will need to be built. 

Dental care looks set to become cheaper. Free dental care will be extended to those aged between 19-21, and the cost of dentistry will be subsidised to the tune of 50 percent for those aged between 22-25. 

The health trust model will also be put under the microscope with the parties examining whether the current system is fit for purpose. 

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POLITICS

What’s been added to Norway’s revised national budget?

Norway's government has tweaked its revised budget to get support from the Socialist Left Party for a parliamentary majority. From cheaper dental bills to increased child support, here's what you need to know.

Published: 17 June 2024 15:46 CEST
What's been added to Norway's revised national budget?

Norway will tap its oil fund for 1.2 billion kroner in extra funding, in addition to the public spending announced when the revised budget for 2024 was unveiled earlier in the spring.

The country’s minority government, comprised of the Labour Party and Centre Party, has turned to the Socialist Left Party to secure a majority for its budgets.
During the negotiations to secure support, new policies are typically put forward by the Socialist Left Party.

The budget was agreed on Monday and will pass through parliament before summer recess.

“It has been crucial for us that the revised national budget should give people throughout Norway a better everyday economy, ensure safety and predictability for people and business,” fiscal spokesperson Ole André Myhrvold from the Center Party said.

Families will see child benefits increased for all children over six. This support will increase 256 kroner a month or 3,072 kroner per year. Once the budget has gone through parliament, payments will be increased from September 1st.

Younger people will also benefit from cheaper dental bills. The cost of dentistry will be heavily subsidised, 75 percent for 25-and-26-year-olds.

More student accommodation would also be built. Student organisations have warned recently that too many pupils at universities have been forced into the private rental market.

The country’s state housing bank would also receive more money, tenants’ rights would be strengthened, and housing support would be increased. The parties have said that a housing package will help get more people onto the property ladder.

READ ALSO: Everything you need to know about the Norwegian State Housing Bank

Significant investment will be made in offshore wind. The parties have promised to invest at least 35 billion kroner in offshore wind. The money will be used to finance and develop 5-10 TWh of energy. The oil industry will have taxes increased to pay for the investment in wind farms.

Several opposition parties have praised the budget for increasing child support. However, the main opposition party, The Conservative Party, was critical of the use of oil money.

“Despite the fact that the government and Socialist Left Party have turned the revised national budget into a completely new state budget, there are no proposals to give Norway more to live on after oil,” the Conservative’s fiscal policy spokesperson Tina Bru has said.

“The use of oil money is increasing, and taxes are still at a record high level. This is not a budget for the future,” she added.

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