No basic allowance increases for local councils

The proposal by Fólkaflokkurin (the People’s Party) to allow local councils to increase the basic allowance has little support in Parliament.

A majority of the Parliament’s financial committee has recommended that the proposal be withdrawn.

The majority argues that while granting this authority would be a good boost to the councils’ finances, the negative consequences outweigh the positive ones. It could, for instance, have the effect that the smaller municipalities lose out in the race to attract citizens.

According to the finance committee majority, the Municipalities’ Association does not have a majority vote for the proposal either.

Translated by prosa.fo