The Hague ends 2010 in the red

For the first time since the 1990s the Municipality of The Hague concluded the 2010 book year in the red with a budget deficit of € 8.6 million. The municipality was able to cushion the blow using its own reserves.

‘Over the last few years we had the wind in our sails. Now the wind is clearly blowing in another direction,’ stated Deputy Mayor Sander Dekker (Finance). ‘The Hague is financially healthy so we can handle this. But these are different times and we’ll have to watch the finances closely.’

The main reasons for the negative result were the stagnating property market and the poor job market. The Hague had to make a big downward adjustment to the value of landed property, which led to a minus of € 61 million for the public space programme. More unemployment claims led to a financial setback of € 4 million. Several one-time windfalls were able to offset this deficit somewhat.

The Hague had an eventful year but was still able to benefit from all the efforts made to set itself in the market. The number of inhabitants is approaching the 500,000 mark. Events drew many visitors, companies were positive about the business climate, residents gave the municipality a good rating for service and the cultural offer. The city’s growth provided some financial space as it entitled The Hague to a higher subsidy from out of the national government’s Gemeentefonds.

Dekker warns that it will be a tough task to keep the municipality’s financial housekeeping sound. He says that the municipality will have to continue along its course of budget cutbacks in order to be able to continue making investments in making the city attractive.