New spending power deal ‘handsome package’, but no relief this year

Coaliton partners and the cabinet reached agreement on a spending power deal as part of next year’s budget early on Wednesday morning after fourteen hours of deliberations, but no measure have been planned for this year, Dutch media report.

The deal is a ‘handsome package’, prime minister Mark Rutte and finance minister Sigrid Kaag said.

According to the Telegraaf, a spending power deal will almost certainly include a temporary package to compensate rising energy prices and structural measures to up wages.

Although Rutte and Kaag remained tightlipped, sources have told NOS an unprecedented €15bn had been earmarked to keep households afloat.

The minimum wage will go up by 10% next year in a one off move, which is more than the originally envisaged three step 2.5% increase over time.

Lower taxes on fuel will continue and income tax for people on low incomes will be cut. Financial support for families on low incomes with children up to the age of 18 will be increased ‘substantially’, as well as rent and care benefits, but no relief for tight budgets will be on the cards for this year.

The measures will be mostly financed by an increase in wealth tax and by companies, sources said.

The details of the budget will be officially presented in three weeks’ time, on September 20.