Major financial problems are expected in more than 200 municipalities from 2026

Major financial problems are expected in more than 200 municipalities from 2026
Zaanstad City Hall

Noos News

  • Book Hanstra

    Local editor

  • Book Hanstra

    Local editor

Municipalities are very concerned about their financial situation. The fear scenario that was already warned at the beginning of this year is now also confirmed in the spring notes: more than 200 municipalities will face significant fiscal deficits from 2026.

From 2026, €2.5 billion less will go from the government to municipalities. This relates to the policy of the current outgoing government. The parties negotiating to form a new government are likely to adopt these plans. “It will mean a lot for the implementation of municipal tasks,” says Sharon Dijksma, president of the Federation of Dutch Municipalities and mayor of Utrecht.

There are already examples of this. For example, Arnhem municipality wrote in a spring memo that it wanted to offer less individual guidance in youth care and more group sessions. Less money will also be provided to maintain roads and green spaces.

No money for sustainability

Politicians in the municipality of Zaanstad are very worried. At the VNG’s general meeting, Beech Councilor Stephanie Onklin put forward a motion to put the problems on the agenda of the formed parties. 43% of municipalities voted in favor of the proposal. Onklin: “Council isn’t doing anything about it now, but it shows how municipalities look at this.”

The chancellor can still draw up a balanced budget for 2025, but it takes into account a deficit of an average of 17.5 million euros per year from 2026. “As a resident, you will notice it immediately. Today we can no longer make new investments, for example, in making school buildings More sustainable,” says the VVD politician. “What is painful is that the House of Representatives agrees with me on the need to place students in good school buildings.”

Zaanstad also expects the number of community centers to decrease and waiting lists for school swimming, for example, to become longer. Due to national policy, municipalities have to arrange many matters themselves, such as social support for residents. Therefore, municipalities do not have enough scope to choose where to make cuts.

‘time is running out’

Research by accounting organization BDO shows that 80 percent of municipalities are affected by the shortage. Marco Bott, municipal advisor at BDO, says all municipalities are concerned: “They have to do more and more, but the resources are very small.” Time is running out, says the consultant. “2026 is fast approaching and the time to think about solutions is getting shorter.”

Spring memos issued by other municipalities also appear worrying. For example, Utrecht mainly wants to consider the costs of its civil servants, and increasing parking prices and tourist taxes are also being discussed there.

In Enschede, there will likely be reductions in poverty reduction efforts, housing construction and facilities. “We wonder if we still have the money to buy a pool,” says consultant Mark Teutlinck. In that municipality they expect a structural deficit of €30 million per year from 2026. The current shortage of youth care also plays a role.

The pain is also being felt in the municipality of Leidschendam-Vorburg. In response to NOS questions, the municipality says: “What is particularly striking is that since 2016, the central government has had increasingly higher expectations of municipalities in the field of social policy, while the resources allocated remain insufficient.” One of the examples presented is investing in treating language delays in young children. Leidssendam-Vorburg says this will be difficult for municipalities that have less money.

Municipalities choose themselves where they want to make cuts, and VNG President Dijkma believes that the cuts, for example, will be at the expense of culture and educational housing. “The structures that make up the city’s cement are under fire,” Dijksma says.

Councilor Xan Onklin is combative: “We hope The Hague will now take action. This can still be avoided if the House reverses the cuts before the summer.”

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