Lübeck's 2026 Budget Plan: Between Cost Constraints, Investments, and Social Responsibility

2026 Budget Plan: A Year in the Tension Between Cost-Cutting Measures and Investments

In January 2026, the city council of the Hanseatic city of Lübeck discussed the budget planning for the year 2026. The discussions focused not only on the financing of ongoing responsibilities but also on investments in social and urban development projects, as well as the planning for the year 2027. The 2026 budget reflects the challenges many municipalities currently have to manage: rising costs, cost constraints, and the pressure to fulfill social and infrastructural responsibilities.

Deficit Remains, but with a Declining Trend

The 2026 budget plan shows a deficit of nearly 148.788 million euros. While this is a decrease compared to the 2025 forecast of 104.6 million euros, it remains a clear sign that Lübeck is still under financial pressure. The main reasons for the deficit include rising loan requirements, investment costs, and a decline in tax revenues, particularly from the property tax category B.

Investments are increasing to 129.124 million euros, with a focus on social infrastructure, municipal buildings, and transportation projects. Particularly notable is the planned renovation of the Heiligen-Geist-Hospital, which could cost up to 41 million euros if the construction start is postponed to 2031. As neither the foundation nor the municipal budget can fully cover the costs, a market-oriented financing model is currently being examined, including, among other options, leasing.

Social Security Remains a Priority Despite Cost Constraints

Another central topic was the funding of social benefits. The social security sector has a budget of around 254 million euros, which benefits parental allowance, guardianship, child support advances, discounts in child daycare, and educational support. The city has deliberately decided not to reduce social support, even in times of budget consolidation. This is also reflected in the establishment of a staff pool for social workers, which will be expanded by 40 positions in 2026.

Of particular interest is the role of the Youth Office, which not only provides guardianship but is also engaged in early help and social counseling. The financing of such services is central to the city's social stability and will therefore also be included in the 2026 budget plan.

Security Costs Are Rising – But Why?

Another point of criticism within the budget planning is the increase in security costs. Staffing and hourly costs for guard services have risen significantly since 2017 – from three deployed personnel to 15 in 2022. The costs for guard services increased from 50,155 euros (2017) to nearly 446,500 euros (2024), indicating a clear rise in security needs, especially in departments 2 and 3.

The increase in the hourly rate – from 16 euros to up to 24.72 euros – also reflects the general cost increase in the security industry. Lübeck has deliberately decided not to reduce security measures, although this is often the case in other municipalities.

Transparency and Digital Budget Planning

Another important instrument for financial transparency is the so-called "Interactive Budget," already established in Lübeck. Citizens can use this digital access to track the city's revenues and expenditures. In addition, annual reports are published, which are considered part of municipal accountability.

The tax administration is also increasingly relying on digital processes: registering and deregistering dogs, issuing tax certificates, or reporting property changes can all be handled online. This saves resources and makes administration more efficient.

Outlook: 2027 Budget in Planning

Planning for the 2027 budget has already begun, and the city council will decide on the budget in September 2026. The funding of investment projects and the long-term balancing of deficits will be particularly important. The municipal oversight body will have to approve the 2026 budget, which is expected to happen in early 2026.