Jaume Collboni’s first exam as mayor is finances. The start of his mandate with a minority government has been led by shock measures, such as Pla Endreça, and also future announcements such as coverage of the Ronda de Dalt. All actions, whether to ensure their continuity or to launch them, require a new budget. Otherwise, providing them financially will be very complicated, although not impossible. And these accounts require, for their part, political agreements that do not exist today and seem difficult to achieve. The forecast of income and expenses for next year still has time to negotiate. But the tax ordinances – the updating of rates and taxes – do not. This Friday’s plenary session decides whether to permanently knock them down after they were rejected last week in commission by the opposition en bloc.
Only an agreement in extremis would save Collboni’s first tax ordinances. If the proposal that will reach the plenary session with the negative report of the municipal groups finally receives more favorable votes than against, it will be provisionally approved and its processing will begin. Then, different political forces and entities could present allegations. A pre-agreement to incorporate changes is the only way to obtain the necessary support. There is also the possibility that they will be put to a vote by blocks (tourist taxation, Economic Activities Tax -IAE-, terraces of bars and restaurants and the rest), as was already done in the commission in which they were rejected. Junts and BComú are Collboni’s first options. And ERC is necessary for a left-wing agreement.
What if this Friday’s plenary session rejects the tax ordinances? So, as of January 1, the current ones would remain in force. Although the effect would be very limited. The City Council’s economic team estimates that the planned changes – mainly the increase in the tourist surcharge on short-stop cruises and tourist apartments and the tax on terraces (see box) – would only mean around 6 million euros more in the whole of income. Very little for a budget of 3,735 million, 140 million more than that of 2023, according to the project that the government had to withdraw from the same commission due to lack of support in order to avoid another rejection.
Whether or not there are new tax ordinances and even if the budget is extended, the City Council’s income will grow in 2024. The forecast of the municipal financial area is that via fees and taxes 71 million more will be obtained than in 2023. This is due to vegetative growth of economic activity, real estate, tourism…, which entail more revenue. The participation in State taxes will also be significantly greater (241 million more) because it is collecting more and has more to distribute. In short, more resources that would be difficult to use in the event of a budget extension. What is not approved or is not expressly authorized by the plenary session as a necessary expense for the city can only be dedicated to repaying debt – Barcelona has no pressure in this sense because its is around 30% of income when the legal limit is 75% – or leave it in the box.
The City Council’s economic team estimates that 715 million of the budget that had been planned for 2024 will not be able to be spent if the current one is extended. More than 500 million are from investments and the rest from current spending. The opposition questions these figures. In any case, many actions would not have continuity because they will have been completed in 2023 and their extension would not apply and others that were expected to continue next year would have the same resources as this year when they would require greater funding. Thus, the reforms of Via Laietana and La Rambla could be affected. Also nominative subsidies to entities that are formalized in annual collaboration agreements and not through open calls.
