Denmark’s new Social Democratic government said on Wednesday it would pour more money into healthcare, education and the welfare system, following through on its campaign pledge to reverse years of cuts by previous administrations.

The government said it had room to manoeuvre on spending because Denmark’s public finances were in good shape after years of austerity and that it would also raise taxes on businesses to help pay for the policy shift.

Many Danes, who pay some of the highest taxes in the world to fund their welfare system, are concerned that further spending cuts would erode the country’s long-cherished universal healthcare, education and services for the elderly.