Dutch Cultural Sector Faces €350 Million Budget Slash, Experts Warn of Deforestation
Amsterdam, Netherlands – A consortium of municipalities, privateinvestors, and cultural organizations has issued a stark warning about the potential consequences of the Dutch government’s proposed budget cuts to the cultural sector. The consortium, whichincludes the Cultuurfonds (Culture Fund), the interest group Kunsten ’92, and the municipalities of Amsterdam and Tilburg, estimates that the proposedmeasures could result in a €350 million annual loss for the sector.
The consortium has dubbed the proposed cuts a deforestation due to the domino effect they are expected to have on the cultural landscape. The proposed measures includea VAT increase from 9% to 21% for cultural goods and services, cuts to subsidies and the municipality fund, an increase in gambling tax, and adjustments to the tax deduction for donations.
The uncoordinated heapof cuts and measures has a huge impact on the whole art and culture sector in the short and long term, said Cathelijne Broers, director of the Cultuurfonds. This Cabinet policy is disastrous and will cause a domino effect because financiers cannot fill each other’s gaps and will mainly support risk-averse projects.
The cultural sector is heavily reliant on government funding, with subsidies accounting for 50% of its income. The remaining 50% is derived from public income (40%) and private financing (10%). Broers argues that the proposed cuts will disproportionately affect smaller and medium-sized institutions and artists, who are less likely to attract private investment.
This will mainly be at the expense of small and medium-sized institutions and makers, Broers added. They are the ones who often push boundaries, experiment with new ideas, and nurture emerging talent. Without their support, the culturallandscape will become much less diverse and vibrant.
The consortium’s warning comes at a time when the Dutch cultural sector is already facing significant challenges. The COVID-19 pandemic forced the closure of theaters, museums, and other cultural venues, leading to a sharp decline in revenue. While the sector has begun to recover, the proposed budget cuts threaten to derail this progress.
The consortium is urging the Dutch government to reconsider its proposed cuts and instead invest in the cultural sector. They argue that a thriving cultural sector is essential for a healthy society, contributing to economic growth, social cohesion, and individual well-being.
Culture isnot a luxury, said Broers. It is an investment in our future. It enriches our lives, inspires our imaginations, and helps us to understand ourselves and the world around us. We cannot afford to let it wither away.
The Dutch government has yet to respond to the consortium’s warning. Itremains to be seen whether the proposed budget cuts will be implemented as planned or whether the government will reconsider its position in light of the potential consequences for the cultural sector.
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