5 June 2024

Reflection on the Outline Agreement of Cabinet Formation 2024

On the night of May 15 to 16, 2024, after months of negotiations, the four negotiating parties PVV, VVD, BBB, and NSC reached an outline agreement. Despite the limited attention given to the cultural sector and its importance for a healthy society, this agreement includes several points that are specifically relevant to everyone working in the cultural sector.

  • The increase in the VAT rate from 9% to 21% on concert tickets and other cultural activities. (Incidentally, a survey by I&O Research showed that the majority are against these plans, with only 28% of the supporters of the forming parties in favor.)
  • The transfer of the specific grant SPUK scheme from the national government to municipalities, with a reduction of €638 million by 2026. The SPUK scheme funds initiatives for cultural participation, sports and exercise, health promotion, and the social foundation.
  • A cut of €100 million in funding for the Dutch Public Broadcasting. This measure will likely lead to a reduction in the cultural offerings on public channels.
  • Specifically for self-employed individuals (zzp’ers): the reduction of the SME profit exemption to 12.03% is reversed (an investment of €93 million), and the VBAR law (clarification of assessment of employment relationships law) is continued.
  • The statutory minimum wage will not be increased as planned by 2025. This will generate over €800 million for the treasury. Additionally, the Unemployment Insurance Act (WW) will be reformed. It will likely become shorter, generating over €200 million.
  • A general cut in subsidies at ministries of €1,000 million. These subsidies fund various initiatives. This cut aims to abolish initiatives related to ‘healthy lifestyle, inclusivity, participation, and participation’. [Note: This does not concern the BIS or funds]
  • Restriction of tax measures for lotteries and donations.

Regarding the policy regarding the cultural sector, there is nothing further in the agreement. This means that the policy in this regard will be left to the Parliament and the forthcoming cabinet, resulting in the development of the cultural sector being in the hands of the parliament and the yet to be formed cabinet. There is thus no long-term vision for cultural policy.

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