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Municipalities considering tax hikes to plug burgeoning welfare gaps

Stephen Gadd
September 19th, 2018


This article is more than 6 years old.

The government’s moratorium on council’s increasing local taxes is increasingly being flouted

It’s a big concern among the Danish public (photo: pxhere)

As costs rise, municipalities all over Denmark are having trouble making ends meet when it comes to providing services for children, the handicapped and the elderly.

Although it is strictly against government policy, a large number of municipalities are actively considering raising local tax levels to make ends meet, reports TV2 Nyheder.

Last year only four municipalities broke ranks and raised tax levels, but this year a number of others are set to join them.

Until the pips squeak
Odense Municipality has raised taxes by 1 percent.

“For seven years we’ve gone through drastic annual savings rounds that have really hurt in areas involving children and the elderly – with stressed personnel who never knew whether they were bought or sold,” said Odense Mayor Peter Rahbæk Juel.

“So we decided on a tax increase of 1 percent for very specific areas.”

READ ALSO: Councils to spend less on elderly next year

According to new figures, the extra tax has made it possible to make 493 jobs secure in the children, young people and handicapped welfare sector.

However, according to Professor Kurt Houlberg from VIVE, the Danish centre for social science research, according to the deal made between the municipalities and the government, the total amount of tax must not go up.

“If some municipalities raise tax levels, others will have to reduce them,” said Houldberg.

Nothing ventured, nothing gained
In May, Copenhagen Mayor Frank Jensen told Politiken that in the budget for 2019 he wouldn’t rule out having to raise taxes because Copenhagen Municipality would have a shortfall of around 800 million kroner.

Roger Buch, the leading researcher at the Danish School of Media and Journalism, points out that some mayors appear to be speculating that the government might turn a blind eye to them flouting the tax moratorium or that Dansk Folkeparti would come to their aid, as happened in Odense.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”