Progressive Party demands immediate economic policy shift

The Progressive Party is demanding an immediate change in the country’s economic policy, saying the government must not balance public finances by undermining families’ financial security or weakening businesses, mbl.is reported. The demand was included in a political resolution adopted at the party’s central board meeting at Laugarbakki over the weekend.

The party proposes limiting increases in the mileage charge, fixed-amount fees and carbon tax to 2.5%. It says planned tax and fee rises would place a disproportionate burden on lower-income families and urged the government to publish an assessment of how taxes, fees and benefit reductions would affect people by income, family structure and place of residence before making decisions.

The resolution also calls for the tax-free allowance to rise by 0.5% more than inflation and for child benefits to follow the Central Bank’s inflation target. The party says the state must provide municipalities with enough funding to support children, and criticises the government for not honouring existing agreements, particularly those concerning children with complex needs.

The central board expressed concern about a cooling housing market. It said the party’s proposals to reorganise housing loan provision should be implemented and called for support for housing cooperatives to increase the supply of different types of homes.

The party also joined numerous local councils in urging the government to reconsider planned changes to the Loftbrú programme. It opposes increased taxes on tourism and wants the value-added tax on admission to bathing lagoons to remain at 11%.

The resolution says Landsvirkjun should remain in public ownership, with its independence respected and its management kept professional. The central board said the party’s work had never been more urgent and that recent local elections had shown the strength, courage and commitment of its representatives and grassroots members.