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Concern over a prolonged crown crisis has prompted the government, the Center Party and liberals to agree on new measures for companies in crisis.
– We are in a very serious situation. The spread of the infection is increasing very rapidly, said Finance Minister Magdalena Andersson (s) at a press conference.
According to her, 100,000 people have lost their jobs due to the crown crisis. There could have been more if the state had not come with support, according to the finance minister. The subsidies are now spreading due to increasing infection and thus difficulties for affected companies to hibernate.
– Many companies are seriously injured after having gone through many difficult months, says Andersson.
The costs of the new measures are estimated at SEK 15 billion next year in increased spending. The latest forecast indicated that the support for dismissal will reach 43,000 million in 2020.
Warns of bankruptcies
– Despite these measures, it will be difficult for many companies when the crisis seems to drag on. Businesses will fail, people will lose jobs, he said.
Support for short-term layoffs, so that companies do not have to lay off employees, is extended until the end of June, in practice for seven months.
However, the subsidy rate will be lowered in the spring from April. As of April, companies’ reduced wage costs due to support are estimated at 52.5 percent maximum. As of April, the figure is 45 percent, according to government estimates. The employee retains about 90 percent of the salary.
The government expects an average of 80,000 layoffs per month in the spring of 2021.
The temporary and more generous system for short-term layoffs was introduced this spring.
When asked why the government does not require companies to use the time to train laid off staff, Finance Minister Per Bolund (MP) responds:
– I hope there is a strong will to make good use of this time.
Good and necessary, says the economic-political spokesperson for the moderates, Elisabeth Svantesson. But the government should have been faster in its twists and turns, making sure aid was more effective and less cumbersome.
– For example, we have established requirements for education when someone is fired. Now it takes many months without being allowed to participate or without a requirement for education, Svantesson says.
Help to winter
The government, C and L also agree to extend adjustment support for companies.
Support is aimed at companies that lost at least 50 percent of their sales during the crisis compared to the corresponding period in 2019. Until now, support has been available from March to July. Now the government and the coalition parties want it to also include August, September and October. The aid corresponds to 70 per cent of the fixed costs of the companies, excluding wage costs. At most, a company can receive SEK 30 million.
– Businesses should have help to be able to overwinter in the crisis, so that people have a job to go to, says the liberals’ economic policy spokesman, Mats Persson.
He believes that the fit support is very accurate.
Sales support is expanded
The so-called sales support for single-owner entrepreneurs also extends to August, September and October.
As before, the support only applies to individual companies whose turnover exceeded SEK 200,000 in 2019. The requirement for receiving support is that the net sales decrease by more than 50 percent compared to the corresponding period in 2019. Then, the entrepreneur may be compensated with 70 per cent of the lost sales, however the majority 72,000 kroner.
A fourth measure is that companies can defer paying taxes for another year. These are, for example, employer contributions and VAT for a maximum of three months.
In March the possibility of obtaining a postponement was introduced. The Swedish Tax Agency has made around 100,000 postponement decisions so far for up to 40,000 companies. Those who have been granted a deferral may apply for one more year.
– If the deferral is not extended, many companies would risk having to pay the tax in the spring amid an ongoing crisis, says Mats Persson.
Companies should be granted an extension unless “special reasons” speak against it.
Peter Wallberg / TT
Lars Larsson / TT
The economic-political spokesperson for the Moderates, Elisabeth Svantesson, lacks training requirements for companies that want to participate in supporting the dismissal. Photo: Henrik Montgomery / TT
Until the end of June next year, companies will be able to receive support if they are forced to lay off employees and let them work part-time due to the pandemic. Current support would have ceased at the end of the year. Support will drop this spring.
Adjustment support is expanded. Companies that have lost more than half of their net sales during the August, September and October period can request support to pay up to 70 percent of their fixed costs.
Sales support for individual companies is also expanded so that support can also be requested for the period from August to October.
Businesses can get a three-month tax deferral for another year. It is now a year.
Entrepreneurs must be able to declare the business inactive to qualify for cash. Valid this year and extended for the next.
Facts: government offices
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