Conflict between municipalities and the national government is the new normal

Tensions between Dutch municipalities and the national government have recently escalated. Back in March, the outlook was bleak: up to three-quarters of municipalities projected a combined shortfall of €5.2 billion over the next four years. The Association of Dutch Municipalities (VNG) was preparing to take legal action. In the end, the crisis was averted — for now — when the government released some additional funding in the spring budget, though it was only a fraction of what municipalities had demanded. Rather than a resolution, this move signals a deeper, structural issue. In addition to financial pressures, municipalities are increasingly clashing with the national government over policy matters. Why are these deficits growing, and why are municipalities more often on a collision course with The Hague?

Without the additional funds announced in the spring budget, only a quarter of the 342 municipalities would have been able to present a balanced budget over the next three years. While the so-called “cliff year” of 2026 has been softened to a “cliff valley” — thanks to an extra €1.3 billion against a projected shortfall of €2.6 billion — budgetary balance remains a major challenge for many municipalities. This is largely due to rising costs in youth care. Budget cuts and painful decisions seem inevitable, but with the 2026 municipal elections approaching, local coalitions are reluctant to make unpopular moves. Proposing higher local taxes or closing a community swimming pool is hardly a winning campaign message.

But the divide is about more than just money. Municipalities also perceive an increasing ideological gap with the national government, especially since the new Schoof cabinet took office. This is evident in disputes over the proposed fireworks ban and the implementation and effectiveness of asylum policies. Many large cities are governed by progressive coalitions, whereas the Schoof cabinet draws heavily on the conservative input of its coalition partners. This tension is now increasingly visible, even within parties.

In mid-February, more than fifty VVD (Conservative Liberals) aldermen had reached their limit. In an open letter to the VVD party leadership and parliamentary group, they argued that ongoing budget cuts are making their jobs impossible. Jeroen Verwoort, finance alderman of Velsen, told NOS that municipalities have essentially become execution offices for national policy, and he criticized the erosion of municipalities’ democratic role. In January 2024, a manifesto by “Councils in Resistance” — supported by councillors from across the political spectrum in over 300 municipalities — was handed to Sharon Dijksma, chair of the VNG, and then-former informateur Ronald Plasterk. The manifesto warned that council work would become unattractive and nearly impossible if the looming financial cliff wasn’t resolved.

Municipalities in action mode — and staying there

Across the board, municipalities are becoming more deliberate in how they position themselves vis-à-vis the national government. In September, the VNG launched a public campaign titled “Your Municipality Does Everything It Can” to raise awareness of the wide range of tasks municipalities perform, and to underscore the need for sufficient funding to deliver on them.

Cooperation between municipalities has also become more professional in recent years. The G4 (Amsterdam, Rotterdam, Utrecht, The Hague) has traditionally held a strong position, but mid-sized municipalities are now speaking up more often through the “M50” platform. This group is also urging the cabinet to reverse planned cuts to the municipal fund and to secure long-term structural financing.

This strategic awareness is not entirely new. As early as July 2020, Zoetermeer’s city council proposed exploring coordinated action with other municipalities aimed at making the municipal fund structurally sufficient for local tasks. The evolution of municipal lobbying has been years in the making.

Both the VNG and individual municipalities are now looking ahead. The Van Ark Committee has been asked to publish a new report in early 2027 on the financial framework for municipalities starting in 2028. This will focus not only on how much money is available, but also on how it is distributed. Many municipalities will be asking themselves: are we trying to make the pie bigger – or just get a bigger slice?

A soft reset for municipal – national relations

For now, the Schoof cabinet has managed to kick this political headache down the road. However, the issue of municipal finances is likely to become fertile ground for opposition parties in the lead-up to the March 2026 municipal elections. Topics like youth care, the fireworks ban, and asylum policy — all of which place burdens on local governments — will dominate the headlines. While tensions between the national government and municipalities often transcend party lines, this nuance is unlikely to matter much to voters. VVD is VVD, and SP (Socialist Party) is SP — regardless of whether it’s a national or municipal election. Still, savvy political actors on both sides will likely use the electoral turnover in local councils to recalibrate the relationship between municipalities and the national government.

It is in this context that long-term thinking will yield the greatest success. Building and maintaining sustainable relationships between The Hague and both the VNG and individual municipalities takes time. Achieving results under the current cabinet requires a smart, forward-looking strategy. The upcoming municipal elections offer a “soft reset” — a moment to rebalance the playing field and launch a new round of advocacy. It is also an ideal opportunity for municipalities to raise their profile and potentially prevent future financial “cliff years.”

That’s why it pays to not only strengthen existing coalitions among municipalities but to also form new alliances and define specific lobbying goals to address financial shortfalls. Parliamentary debates and roundtables on youth care or asylum policy ahead of the 2026 elections present excellent opportunities for municipalities to influence national politics. These moments can be used to demonstrate how national decisions impact the local level — and to jointly propose realistic solutions that earn both political and financial support in The Hague.