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The government, C and L, propose that support for small businesses that have lost much of their turnover should increase to 90 percent during November-February. – This will make a difference for many companies that are going through a brutally difficult time right now, says Mats Persson, economic-political spokesman for L.
The economic-political spokesman for the liberals Mats Persson (left).
The government and the cooperation parties have agreed to expand the so-called adjustment support for small and medium-sized enterprises, as well as turnover support for individual traders. The extension is valid from November to February.
Now they also agree to simultaneously increase the level of compensation from a maximum of 75 to 90 percent of fixed costs for companies with fewer than 50 employees.
– It’s about companies avoiding having to go bankrupt and lay off their employees, says Mats Persson.
Those requesting the support must have lost 30 percent of their turnover. The expanded and increased support is estimated to cost SEK 3.5 billion.
Recently, the government has decided on several new restrictions that affect companies, for example, that alcohol cannot be served after 8 pm and a limited number of customers in stores.
– Then it is also reasonable for the state to get involved and replace to a greater extent, says Rickard Nordin, economic-political spokesman for C.
But it’s not just the toughest restrictions that require the most support, Nordin believes. The longer the pandemic lasts, the lower the margins for companies.
– These companies have struggled for almost a year with falling sales and customers who are hesitant to come. Then you start eating on the sidelines and soon there is nothing left, he says.
The ambition is for the Riksdag to quickly make a decision to extend and expand support. But the affected companies cannot count on getting money right away. First, the support period must end and companies must demonstrate the magnitude of the loss of turnover they have had. For the support period from January to February, the application period begins on March 1. And then the request should be processed.
Last week, the moderates took an initiative in the Riksdag’s Finance Committee to raise the level of compensation to just 90 percent. That proposal was due to be decided on Tuesday, but the government’s announcement came earlier.
– This is important information. It will save jobs and businesses, says M’s political-economic spokesperson Elisabeth Svantesson.
– But now it is also important to ensure that payments are faster than they have been so far.
Employers also celebrate the increase in the level of compensation, but are concerned that the government has not taken the warning signs of complicated systems seriously.
The government, C and L also agreed to increase support for short-term layoffs due to the new anti-pandemic law introduced on January 10.
The government is empowered to introduce far-reaching measures to prevent congestion and the spread of infections, which can affect many businesses. It is now proposed that companies from January to March can reduce employee working hours by as much as 80 percent, compared to a maximum of 60 percent today.
The change applies in general and not just to companies that are directly affected by increased restrictions.
More support in crisis for companies
Adjustment support was introduced in June 2020. It is direct support based on a loss of turnover and the support increases the more the turnover decreases.
The purpose is that companies can winter the pandemic.
The terms have been changed multiple times, but companies are now required to have had a turnover loss of more than 30 percent compared to a year ago.
Support is given as a proportion of the firm’s fixed costs. It is proposed to increase the level of compensation from a maximum of 75 percent to 90 percent for the period from November 2020 to February 2021. This applies to companies with less than 50 employees and a turnover that does not exceed 100 million per year.
For the largest companies, the maximum level remains at 70 percent.
Sales support works in a similar way and can be requested by individual merchants.
With regard to the increase in aid for short-term work, it is proposed that companies during the period from January to March can reduce the working hours of employees by up to 80%, compared to the current maximum of 60%.
With a short-term layoff of 80 percent, the employee retains 88 percent of the regular salary, while the cost of the employer’s salary is reduced by 72 percent. The state accounts for 75 percent of the cost of reducing work hours.
The change applies in general and not just to companies that are directly affected by increased restrictions.
The total cost of short-term work is estimated at SEK 10.7 billion in 2021.
Source: Government
