Leverkusen in Budget Crisis Mode: The Consequences of Business Tax Policy and the Search for Financial Stability

Leverkusen in Budget Crisis Mode: The Consequences of Business Tax Policy and the Search for Financial Stability

Leverkusen has been under growing pressure for years to reassess its financial policy. The decisions made in February 2026 not only reflect the city's current financial situation but also reveal its strategy for dealing with challenges – and where it is still searching for solutions.

The Business Tax Rate and Its Fiscal Consequences

In recent years, Leverkusen has opted for a significant reduction in the business tax rate – from 475 to 250 percent of the statutory rate. The motivation behind this decision was to gain competitive advantages for companies, especially in the chemical industry. However, reality has shown that the tax rate not only promotes economic growth but also leads to fiscal risks.

The tax rate reduction almost halved the gross business tax revenues. Leverkusen currently ranks third from the bottom in North Rhine-Westphalia in terms of business tax revenue per inhabitant. A report commissioned by the Greens confirmed that the low tax rate leads to significant revenue losses – with long-term effects on the municipal financial equalization system.

According to the report, a tax rate of 397 vH would be the "neutral point" at which fiscal losses could be avoided. At 475 vH, the net revenues would be around 100 million euros per year higher than at 250 vH. Even small increases could stabilize revenues, which is particularly important in a time of increasing municipal responsibilities.

The municipal oversight authority has already demanded a financial stabilization plan that includes annual savings of up to 261 million euros by 2035. The balance between economic development and financial stability is becoming increasingly tight.

Kindergarten Renovation: Investment with Risk

One of the largest investments in the 2026 budget is the renovation of the Dhünnstraße Kindergarten. With planned total construction costs of 14 million euros – including a risk allowance and price increases – the project is a major financial undertaking. Funding of 922,250 euros has been applied for and approved, yet a significant financing gap remains.

The renovation includes technical equipment (TGA), fire protection, Seveso protection, and energy efficiency measures. Although a photovoltaic system is not feasible due to structural limitations, the roofs will be equipped with extensive green roofs – a step toward climate protection and sustainability.

The project is budgeted in the 2026 budget, the construction decision is scheduled for December 2025, and completion is planned for September 2029. The investment is not just a construction project but also a sign that Leverkusen is willing to invest in education and infrastructure in the long term – despite the financial burdens.

Cultural Policy as Part of the Budget Consolidation

Cultural policy in Leverkusen is also being consolidated. The Department of Culture and City Marketing plans to adjust ticket prices starting with the 2026/2027 season. The price adjustment will be +10% online and +20% in the box office. The rationale: to reflect price developments, avoid sudden price jumps, and contribute to budget consolidation at the same time.

Children's and youth theater as well as student subscriptions are exempt from the price adjustment – a signal of social responsibility. A regular review of ticket prices every two years is planned to ensure transparency and inform political decision-makers.

Culture is also a central part of urban development in Leverkusen. Yet in a time of increasing budget deficits, it is also becoming a tool for consolidation – with the goal of preserving quality and attractiveness.

Financial Planning and Investment Strategy Until 2030

The medium-term financial planning until 2030 shows that Leverkusen is investing – even as costs are rising. The Leverkusen Real Estate Company (LEVI) and the Urban Development Company (SEPG) have approved their economic and financial plans. Investments in fixed assets, loan repayments, and changes in reserves are listed in detail.

The cash flow is planned to be positive until 2030, but personnel costs are rising significantly – from 48,469 euros in 2025 to 612,331 euros in the period 2027–2030. Material costs, on the other hand, are slightly decreasing. The investments in kindergartens, TGA buildings, and other projects are a central part of the planning.

The city plans to invest over 37 million euros in urban development by 2030. The challenge is to finance these investments with a budget that is heavily burdened by business tax policy.

Conclusion: A City in a Tension Field

Leverkusen is facing a turning point in financial policy in 2026. The decisions made in February show that the city is ready to make investments in education, culture, and infrastructure – but also that it is confronted with financial reality. The business tax policy, kindergarten renovation, cultural promotion, and medium-term financial planning are just a few examples of how the city is dealing with the challenges.

The future of Leverkusen depends on whether it is possible to find a financial policy course that ensures both economic growth and financial stability. The debates about the tax rate, the promotion of investments, and the role of culture in the budget show that the search for the right balance is still ongoing.