Barcelona retains 75% bonus of terrace rate for 2023

However, some work had to be done to reach an agreement between government partners Barcelona en Comú and PSC before seeking that consensus with other parties in the plenary, which will now be scrutinized. One of the clearest points that made a difference was the reduction of the terrace rate, which is currently set at 75%. The socialists wanted to leave it that way, and the ‘partners’ wanted to reduce this percentage, that is, for restaurateurs to pay more. Finally, at this point PSC wins and the bonus remains as it is.

Anticipate the crisis

Budget and regulation is one of the most striking aspects of the project. 2023 accounts 3,595.9 million euros, 5.6% more than in the current year if the offer offered prosperous this Friday. The project was presented by Jaume Collboni, the first deputy mayor and leader of the Socialists on the council; Deputy Mayor for Culture and Councilor for Budget and Colau’s right-hand man, Jordi Martiand Undersecretary of Treasury, Montserrat Ballarin.

When asked for Barcelona en Comú’s opinion on the bonus for terraces, Martí used Florentine style to explain the outcome of the internal negotiation: “Once you reach an agreement, you accept it”.

The ‘communes’ feel that the proportion of terraces may partially or fully recover to the extent that restoration activity has recovered after the apparent return of tourists to the Catalan capital. Judging by the outcome, however, they failed to impose their own vision on PSC’s, which claimed that canceling the bonus in the context of a pay freeze would break this trend and greatly impact an industry hit by the crisis. The economic crisis that caused the consumption to stop caused by covid.

Collboni assured that the budgets of this mandate, particularly the ERC, have the will to negotiate and negotiate with the opposition, though not just with the Republicans. Yes Salvador Island In parliament he reached out to the PSC for a budget deal, and Ernest Maragall, the head of the opposition in parliament, the head of the Republican group, should do the same.

He said the municipal accounts project is planned to predict a relatively perceived crisis situation for now, linked to high inflation and energy prices. “There is deep economic uncertainty and the budget needs to provide certainty and peace of mind,” he said. “Financial pressure will not increase,” he said.

Freeze

Speaking of terraces in particular and fiscal arrangements in general, Ballarín underlined that the government prefers a “freezing of taxes and fees”. To facilitate payments, any person – not companies – who need to obtain more than two municipal receipts can pay them in installments over ten months. A system required a “flat rate”.

Martí stated that this year the project will pass the committee in October, not in November as in previous years. “This gives us two months for negotiation.” The mayor hinted at the disconnect between the partners of the Catalan Government as a factor influencing this negotiation, since in fact one possible scenario was that there would be an agreement in the Parliament and the council, as happened last year. It’s not something that has been excluded yet.

“It’s better to have a budget deal than not to have it,” he insisted. The good thing is that there was an agreement in Congress, the Catalan Chamber and the city council, he stressed. In any case, he referred to recent years to demand belief that there was an agreement with the opposition.

Evolution

Martí looked back to highlight how the city’s budget has evolved since 2015, when Barcelona en Comú took over the local government. Starting from the initial increased budget amount, it was 2,550 million in 2015, 1,000 million less than the project for next year. The investment plan amount for 2015 amounted to 374 million and reached 759 million in this project. The 2015 budget represents 3.5% of the city’s GDP, reaching 4% in the 2023 proposal.

The councilor conveyed some details of the 2023 project. Revenues increased by 190 million, 112 from State contribution and 30 from increase in tourism tax contribution. Non-financial expenses increased by 227 million, 6.9%. In personnel, this figure rises to 28.7 million, largely due to the increase of 1,000 agents of the City Guard during his tenure.

Financial expenses increased from 15.8 million to 21 million due to the debt created by the deficit that closed the last two years. No more openings are expected this year. The council’s debt is around 800 million, or 30% of current revenue. Emphasizing that it is a perfectly acceptable percentage, Martí warns that when it reaches 60%, it is alarming.