By 2031, every Flemish resident will pay around 1,200 euros in taxes to their city or municipality, almost a third more than in 2024. This is one of the findings from an analysis of municipal multi-year plans conducted by VRT NEWS. Towns and municipalities will thus derive half of their income from their own residents and businesses, compared to only 40 per cent in 2024.
From security and childcare to mobility, the list of things your local government has to spend money on is long. In Flanders, cities and municipalities plan to spend an average of 2,443 euros per resident per year across all areas during the coming administrative period.
During the previous 6-year administrative period, the figure was just under €1,929 per inhabitant per year. This represents an increase of almost 27 per cent, or more than a quarter.
Local authorities are obliged to have a balanced budget. In order to pay all costs, there must therefore be an equal amount of income. Part of this is collected by the authorities directly from residents and local businesses.
This includes local income tax, property tax as well as surcharges, fines and fees.
At the end of 2024, at the end of the previous administrative period, citizens and businesses throughout Flanders paid around 912 euros per inhabitant. According to estimates in the multi-year plans, this will have risen to 1,200 euros per inhabitant by 2031. That is more than 31 per cent, or almost a third, more.
Where is expenditure rising?
We are seeing expenditure rise in all areas. The largest increase is forecast in the budget for employment and enterprise. Although the total expenditure in this area is only expected to be around €36 per inhabitant in the coming administrative period, this still represents an increase of more than half compared to the previous period.
This is probably because cities and municipalities are planning to spend more on getting their citizens into work, or “activating” them, as it is called. The reform of unemployment benefits, which is being limited in time to two years at most, means many unemployed people will have to rely on municipal aid and support from local social services, the OCMWs, instead of receiving unemployment benefit.
Budgets for security are also rising sharply, by around 40 per cent, to just under 230 euros per inhabitant. Local authorities are allocating more money to their police services and, for example, to the fight against drug-related anti-social behaviour or to more cameras in the streets.
Budgets are rising least in the areas of culture and care. Traditionally, a lot of money always goes on health care, care for the elderly and childcare. This includes, for example, money for residential care centres, childcare and social housing.