The prescription of municipalities against inflation: Freezing interest rates and helping families

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First the coronavirus pandemic, now inflation, but the truth is that the municipalities of the state of Alicante have not stopped implementing measures since 2020 to help citizens, self-employed and small companies face a complex economic context. Don’t stop healing. This will continue to be the case in the newly started year when the councils announce their new initiative packages. Direct assistance to families experiencing the worst of interest rates and tax freezes or the current price hike scenario. The precautions are similar in all cases, with the nuances. Thus, while conservative municipal governments give more importance to the economy and trade, progressive municipalities tend to focus more on the social sphere.

Inflation is currently the biggest concern of families, self-employed and SMEs alike. Although the situation has tended to improve in recent months, the reality is that prices, especially what is in the shopping cart, continue to rise rapidly, and this is something that has not gone unnoticed by the city councils closest to the citizens. reaffirmed measures to help weather the storm.

Starting with Alicante managed by PP with support from Ciudadanos Announced tax incentive plan with the aim of contributing to confronting the crisis, reviving economic activity and supporting the creation of employment and social welfare. In this context, a 95% bonus on capital gains on inheritances between direct relatives, a bonus on business transfers, and a reduction in the Economic Activity Tax (IAE) for companies that invoice and develop under one million euros are proposed. economic activities of declared special interest or municipal interest.

There will be a reduction in this tax for businesses that use or produce renewable energy, and an amendment to the Construction and Construction Tax (ICIO) regulation to scale the payment. It will also help with a subsidy program for taxi refurbishment, tax incentives for green roofs and vertical gardens, and conservation efforts in protected buildings. It is also announced Property Tax deduction (IBI) is limited to hundred-year-old businesses. All this together with measures already in place, such as helping SMEs, micro-SMEs, small self-employed entrepreneurs and professionals to mitigate the effects of the energy crisis.

The Elche City Council, led by the PSOE, took action. 7.5m euros to alleviate the economic consequences of the war in Ukraine. In this context, exceptional measures such as the suspension of table and chair fees and the extension of terraces for the hotel and restaurant sector will be extended for the fourth time in a row, and energy for families to face increasing energy costs. flavored with discounts. The Elche consortium will also continue to provide assistance for IBI, electricity and gas payments. Likewise, it plans to increase the social aid budget item, which was cut this year due to the increase in other current expenses, including the electricity bill, with the remaining treasury.

water and waste

In Benidorm managed by PP, The City Council decided to undertake the increase in waste and water treatment costs.will continue to insist on consumer bonds that have also benefited more than 45,000 citizens in their latest editions, without affecting citizens or businesses. There are also aids aimed at promoting the use of public transport, both taxi and bus, in a series of measures implemented since the beginning of the pandemic and mainly aimed at helping the tourism and hospitality sector.

With a socialist administration, Alcoy is another municipality that has taken measures to confront the complex economic situation that families and businesses in general are going through. Looking at the new year, all rates and public prices are scheduled to be frozen. Also, it will Extraordinary assistance of up to 300 euros for families whose income does not exceed the inter-professional minimum wageAn economic item of 300,000 Euros will be allocated. The City Council will also increase the currently in effect social assistance by 15% and will continue to support both small businesses and the self-employed so that they have fewer problems in this regard.

Another consortium that continues to implement the measures is that of Torrevieja, led by PP. What it does in this case is to continue the bulk of those launched as a result of the outbreak of the coronavirus pandemic, rather than adopting new initiatives. a) Yes, Taxes continue to be suspended for the occupation of public streets, both for the terraces of bars and restaurants and for the street market.Considering that there are more than 700 catering establishments and around 500 street vendors in the municipality, it has a significant impact. Torrevieja was also the first city to implement the bonus to encourage consumption in stores before the City Council subsidized it, and is already running its sixth campaign. The City Council also allocates one million euros to the distribution of a large number of non-perishable food and hygiene products for the most disadvantaged families, while the company Hidraqua, which is responsible for the drinking water service in the town, is giving bonuses to these consumers. those who justify their inability to pay their bills.

Elda City Council led by PSOE decided freeze your taxes and wages through 2023. The measure affects Property Tax (IBI), Construction, Installation and Construction Tax (ICIO), rates in general and all public prices, including those set for the use of sports facilities and municipal swimming pools. Also, for the first six months of this year, it was decided to suspend the occupation tax rate on public roads with tables and chairs on bar and restaurant terraces. These measures are added to the implementation of the energy bonus, which allocates 600,000 euros to SMEs, self-employed and businesses to cope with the rise in electricity, gas and fuel prices.

They collaborated on this information Carolina Pascual, Ana Fajardo, david families Y Juan Carlos Perez Gil.

Consell and the State Legislature are also promoting measures

Generalitat is also taking measures to protect Valencian families against inflation. Therefore, Consell recently passed a decree that temporarily extended the 10% reduction in public tariffs and prices until August 31st, and extended the suspension of the amount paid for the cleaning fee to taxpayers until July 31st.

The Botànic government, headed by Ximo Puig, will complement the State aid to lower the prices of public transport to assist citizens in their travels after the reduction in fuel prices and will contribute to reducing the use of time. special vehicle.

In addition, new tax incentives have been created in order to encourage various measures to support economic activities on the territory of municipalities at risk of depopulation, to attract and maintain businesses and companies, and to protect historic centers and districts that significantly represent historical centers and settlements. traditional architecture.

To this end, the Generalitat law regulating the territorial division of personal income tax was amended to include new cuts and reductions in tax rates. Thus, the tax rate applied on real estate transfers to the company headquarters or business center has been increased from the general tax rate of 10% to a super discounted 4% in the form of burdensome asset transfers. Likewise, for companies that acquire real estate for the same purpose, a 30% bonus is collected over the gradual quota of the documented legal transaction modality.

In the first quarter of this year, the Alicante Provincial Council will mobilize an emergency fund initially equipped with an extraordinary fund of 115 million euros to combat the rise in energy prices and the shopping cart.

The head of the provincial agency, Carlos Mazón, has announced a new campaign of consumer coupons of 20m euros, which is 2x more than in 2022 globally. The energy crisis will increase from 9 million to 15 million.

At this point, a special €5m scheme is planned to be activated to help the self-employed pay the rent of their workplaces, this amount going to SMEs and micro-SMEs for the same purpose.

This extraordinary fund will also have a significant social character as it is planned to continue assistance to municipalities to deal with the social expenditures caused by the covid crisis, but will likewise increase from 9m euros to 15m euros this year. .

Finally, thanks to this ambitious investment program, Plan + Cerca de la Diputación is planned to be strengthened, which will increase its donation to 40 million euros, which is 4 times more than by 2022.

This €115 million aid, which constitutes the Provincial Assembly’s extraordinary fund, is 34 million € more than was invested last year for the same purposes. One of the most well-received programs is the consumer bonds program, as there are many municipalities that have adopted it to encourage shopping at traditional stores.

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