The government’s tax reform plans centre on a simplified tax system and cheaper employment costs, broadcaster Nos says on Wednesday.

The ruling VVD and Labour parties held talks on the changes on Tuesday and, the broadcaster says, are extremely likely to reach agreement.

However, in order to get the reforms through the upper house of parliament, they will also need to reach a deal with several opposition parties.

The Dutch central bank calculates the government has some €5bn at its disposal to pay for the changes and this is likely to make it easier to win opposition support, Nos says.

Give away

‘This makes it politically interesting,’ Nos correspondent Joost Vullings said. ‘The cabinet is essentially saying “come and help us give away €5bn”. No one can resist that.’

One element of the overhaul will involve replacing the plethora of supplementary benefits, such as housing support and childcare subsidies, with a single payment.

The government had pledged to publish its proposals before the summer but prime minister Mark Rutte said in May this is now likely to be delayed because of the need for wider opposition support.