Uncoordinated pile of cuts to arts and culture leaves 350 million barren

Increase in VAT and gaming tax + reduction in municipal and state subsidies disastrous

The cabinet's proposed cultural policy will cause a €350 million cutback and a negative domino effect in the arts and culture sector. This was revealed today in an analysis of data from private funders, municipalities and the arts and culture sector. "Just before Budget Day, we as a consortium are sounding the alarm. The uncoordinated pile of cuts and measures has a huge impact on the entire arts and culture sector, both in the short and long term," says Cathelijne Broers, director of the Culture Fund.

The analysis shows that the overall package of Cabinet measures negatively reinforces each other. Besides the increase in VAT from 9% to 21% and the increase in gaming tax, municipal and government subsidies are being cut and the gift deduction adjusted. Broers says: "For the first time, the data from this consortium have been aggregated and analysed and it shows that the entire arts and culture sector will be hit with a loss of €350 million a year in revenue. This is due to declining audiences, less subsidy and less private income. There is no difference between subsidised and non-subsidised cultural expressions, large renowned companies and new talents and cultural participation within or outside the Randstad."

Cabinet is counting itself rich

According to sources in The Hague, the cabinet says it needs the revenue from the VAT increase too badly to reverse it. Broers: "The cabinet is wrongly counting itself rich. The VAT measure costs the sector more than it brings in for the exchequer. The miscalculation is that the price elasticity VAT increase does not take into account the increase in entrance ticket prices due to the rising costs of personnel, materials and energy. It assumes 5-6% less audience revenue, but is rather 9-12%."

Affecting employment

The analysis further shows that the proposed measures affect both the social values of culture and employment the and livelihoods. The arts and culture sector is responsible for a direct contribution of 5.5 billion euros to the Gross Domestic Product (GDP) and, together with the creative industries, employs 392,000 people. Broers: "Do not underestimate the social values of arts and culture. It brings people together, encourages critical thinking and has a positive impact on our health. Our history is kept alive in museums throughout the Netherlands so that every generation can learn about Dutch art and culture, customs and innovations. Surely we should preserve that and invest in it instead of cutting back on it?

The consortium urges a postponement of VAT increase so that there is first proper research on the actual revenue and impact on the sector. The impact of the municipal fund cut should also be further investigated. According to the private funders, municipalities and the arts and culture sector, it is an uncoordinated pile of measures for which no one has a view or takes responsibility from the state. They call on Minister Bruins of Education, Culture and Science to take the lead.

Cooperation cultural regions under pressure

Touria Meliani, alderman for arts and culture of the municipality of Amsterdam: "Culture connects and enriches the lives of very many Dutch people. That is worth a huge amount. I am horrified by the findings in this analysis. In particular, the cut in the municipal fund, which municipalities also use to support local arts and culture, has major consequences. It will lead to sharp choices for the cultural sector across the country: locally, regionally and nationally. Everyone in the Netherlands has a right to culture. It should not matter how big or small your wallet is or where you live in the Netherlands."

Marcelle Hendrickx, alderman of Culture for the municipality of Tilburg and administrative spokesperson on culture for the Association of Netherlands Municipalities: "The reduction of the municipal fund and the VAT increase have the biggest impact, according to this analysis. That impact goes beyond the arts and culture sector. It also concerns talent development of our residents, combating loneliness and promoting people's well-being. Access to arts and culture has a very positive impact on that. If individual municipalities feel compelled to cut back on arts and culture because of the reduction in the municipal fund, the VAT increase will be a measure that further reinforces the effect of the national cuts. As a result, valuable collaborations within the various cultural regions will disappear, which is a terrible shame. This will put additional pressure on both the cultural offering and talent development of, in particular, residents outside the Randstad. In addition, the VAT increase makes art and culture more expensive and thus less accessible for people with small wallets. Surely we don't want that!"

Domino effect

On average, the cultural sector is funded by 50% subsidy and 50% own income, which consists of 40% public income and 10% private funding. Broers: "This government policy is disastrous and will create a domino effect, as funders will not be able to fill each other's gaps and will mainly support 'risk-averse' projects. This will mainly be at the expense of small and medium-sized institutions and creators. The result is an impoverishment of the cultural infrastructure that is already tangible outside the Randstad and in large core municipalities."
According to the consortium, cuts at producing and presenting institutions in the Randstad and large core municipalities directly affect regional museums and venues. After all, the big audience-pleasing performances often come from there, and these ensure that venues have the resources to fund programming from their own region and emerging talent.

Jeroen Bartelse, co-president Kunsten '92: "The arts and culture sector just sailed through the 'perfect storm': coronapanda, energy crisis and cost increases dealt hefty blows to creators and organisations. This analysis shows that the stacking of measures will hit the sector midstream once more. Taken together, these measures will have a greater financial impact than the draconian cuts made by the Rutte I government from 2010 to 2012."