Working people winners in latest budget

"Workers will have a tax cut of up to 337 Swedish kronor"
4:06 min

The government's autumn budget, presented on Wednesday morning, contains several education and tax relief initiatives, as well as raised alcohol taxes and outlines for a review of the Swedish Public Employment Service (Arbetsförmedlingen).

The government is delivering its promised fifth cut in income taxes for those with jobs and a raised cut-off point for state taxes, meaning those who earn less than SEK 37,417 per month will now not be obliged to pay state taxes next year. The government has said that these two initiatives will help create 13,000 new jobs.

The government has also proposed lowering tax rates for pensioners by about SEK 100 per month.

The budget sets aside SEK 122 million to fund leisure activities for children from low-income families.

In the area of education, the budget outlines several initiatives, including specialist teaching positions with higher wages than those earned by regular teachers, as well as an apprentice scheme and funding for a review of Sweden’s publicly funded, privately managed free-schools. The review is to be carried out by the Swedish Schools Inspectorate (Skolinspektionen).

In addition, alcohol taxes will be raised and the government is also launching a scheme to promote eco-friendly cars.

The budget also includes new directives regarding the Swedish Public Employment Service (Arbetsförmedlingen), which will be reviewed following a series of controversies leading to the director, Angela Bermudez Svankvist, leaving her post.

Swedes living abroad, such as pensioners or those that cross the border to come to work can also look forward to a tax cut, from 25 to 20 percent.  

We spoke to Ikano Bank's personal finances expert Bodil Hallin, who says the winners in this autumn budget are salaried workers, while those on benefits, pensions or students will not see the same boost to their wallets.

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