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STOCKHOLM

Stockholm county announces plans to raise tax

The political majority in the Stockholm county administrative region - the Social Democrats, Centre Party, Green Party and Left Party - has announced plans to increase taxes in its budget for 2024.

Stockholm county announces plans to raise tax
Regional finance councillor Aida Hadzialic. File photo. Photo: Marko Säävälä/TT

The council voted to increase regional income tax by 30 öre for every hundred kronor and also to increase patient fees and raise the price of a travel card on SL public transport.

According to the regional councillor for finance, Aida Hadzialic, the move will protect the healthcare service from having to make dramatic cuts.

“It’s about being able to look healthcare workers in the eye,” she told a press conference.

In Sweden income tax is highly decentralised, with most wage earners paying income tax only to their municipality and region. Only those who earn more than 598,500 kronor a year pay income tax to the state. 

The four parties’ budget for Stockholm region proposes that the patient fee for urgent care centres (närakuten) be raised from 250 kronor to 275 kronor, and the fee for outpatient care (öppenvården) would be hiked from 250 to 275 kronor.

Those with a 30-day pass on SL public transport would see the price of their pass increase by 50 kronor in 2024 and another 40 kronor in 2025, with the price of a single ticket going up by 3 kronor under the new proposal.

Hadzialic underlined the fact that the region is facing increased expenses of over ten billion kronor, with a range of measures necessary to plug the gap.

“All regions are currently struggling significantly with their finances, and that applies to the Stockholm region too,” she said.

Gustav Hemming, the regional councillor for climate, infrastructure and the archipelago, has accused the government of letting down regions.

“A tax increase of 30 öre in this situation is the alternative to chaos,” he wrote in a press statement. “The government’s betrayal of the regions has left us forced to choose between either firing healthcare workers en masse and closing healthcare centres, or raising taxes.”

The government did propose a ten billion kronor increase in regional and municipal funding in its budget for 2024, as well as a six billion increase in targeted support.

According to Hadzialic, that money is welcome, but nowhere near enough.

Opposition councillor Irene Svenonius, a member of the Moderates who are in government at the state level, is critical of the budget put forward by the majority in the Stockholm region.

“This is a twofold betrayal,” she wrote in a comment to TT newswire. “A tax increase of 30 öre and still, a budget which comes up over a billion kronor short. Stockholmers will have to pay more, but get less. This is not taking responsibility.”

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ECONOMY

What Taylor Swift’s Stockholm gigs tell us about the Swedish economy

Taylor Swift's visit to Stockholm is expected to boost the capital's economy with international fans grabbing a 'bargain' thanks to the low Swedish krona, despite the fact that hotel rooms are almost 300 percent more expensive than normal.

What Taylor Swift's Stockholm gigs tell us about the Swedish economy

The weak Swedish currency, the krona, means tickets for Swift’s three Stockholm dates are more affordable than elsewhere for many foreigners.

Fans around the world seem to have heeded Swift’s lyric “Grab your passport and my hand”, with “Swifties” from 130 countries flocking to Stockholm. Many queued through the night outside the Stockholm arena before the US star’s first concert on Friday.

“In total we will see approximately 150,000 people attending the concerts in Stockholm. Of them, 120,000 will be traveling to Stockholm,” Stockholm Chamber of Commerce chief economist Carl Bergkvist told AFP.

“They will be spending approximately half a billion Swedish kronor ($46 million) during their stay here in Stockholm,” he said.

That is money dished out on hotels, meals, shopping and transport, among other things, but not concert tickets or flights, Bergkvist said.

After opening her European tour in Paris last weekend, Swift’s Stockholm shows are her only dates in the Nordic region.

The Visit Stockholm tourism agency was also in on the hype, with its webpage on Friday proudly declaring “Welcome to Swiftholm”.

But last-minute tourists will struggle to find a hotel room in the city.

“We have approximately 40,000 rooms in Stockholm – 80,000 beds – and 120,000 people coming here. So we will be out of hotel rooms and we see a price spike of approximately 295 percent,” Bergkvist said.

“As soon as these three concerts were announced, there was immediately a surge in demand,” Åsa Lilja, commercial director at hotel chain Ligula Hospitality Group, told AFP.

“This also led to a rise in prices,” she said.

Swift-flation?

Sweden has only recently managed to bring down recent years’ stubbornly high inflation.

Economists have expressed fears that the Swift craze could send Swedish consumer prices rising again, as they did when pop diva Beyoncé opened her European tour in Stockholm last May.

“There’s a risk that prices will rise for hotel and restaurant visits, the concert tickets and everything that goes along with” the show, Danske Bank economist Michael Grahn wrote in a note.

However, “the price pressure would have to be even stronger than (the Beyoncé effect in May) last year to be reflected in the inflation figures”.

Swedish central bank governor Erik Thedeen even took the influx of foreign Swifties as a sign that the Swedish “krona was fundamentally undervalued”.

“It’s clearly a bargain to come to Stockholm,” he said.

Meanwhile, fans seemed ready to spend whatever it takes to see Swift perform.

“I spent around 7,500 kronor ($697) in total for three tickets. I think it’s worth it,” said Filippa, a 21-year-old Swedish fan queuing up early Friday for the evening’s concert.

 
 
 
 
 
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