Lübeck budget 2025: deficit increases dramatically to 105.5 million euros!

Lübeck budget 2025: deficit increases dramatically to 105.5 million euros!

On June 24, 2025, Mayor Jan Lindenau published the current budget figures for the Hanseatic City of Lübeck for the first quarter of the year. The analysis shows that the forecast deficit has increased to 105.5 million euros, which represents an increase of 19.1 million euros compared to original expectations. The main cause of this negative development is the increasing costs in the city administration's departments, which increase the deficit by 20.7 million euros.

Child care is a significant cost factor, with expenses now 13.3 million euros higher than initially calculated. In addition, the rescue service has recorded a decline in revenue of six million euros due to previous billing. Despite these challenges, there is also positive news: Lübeck will receive one million euros more from the financial equalization as well as a slight increase in concession fees and tax revenue by 600,000 euros.

Investments and savings measures

For the 2025 financial year, expenses are set at 1.2 billion euros, while income is expected to be 1.1 billion euros. This would result in a deficit of 99.5 million euros, which is in stark contrast to the initial plans, which started with a deficit of around 115 million euros. The internal budget preparation process shows that the city administration is planning restrictively and based on realistic developments in order to counteract future financial bottlenecks, as luebeck.de reports.

Despite the existing deficit, investments in the urban infrastructure should continue. The mayor emphasizes how important such investments are in order to avoid decay and keep the city sustainable. The largest investment areas include 21 million euros for roads, cycle paths, sidewalks and bridges, 7 million euros for cycle paths and 14.5 million euros for schools. The final decision on the budget will be made at the citizens' meeting on September 26, 2024, after all specialist committees have discussed it.

Postponements and savings

It was also decided to postpone two major investment projects until next year. This includes the renewal of platform 11 at Skandinavienkai worth 2.9 million euros and also the unclear availability of funds for a new bicycle parking garage at the train station worth one million euros. In addition, the city council has decided to save 300,000 euros on rental costs, although long-term rental agreements conflict with this. Only the rental agreement at Fischergrube 52 can be terminated next year, which means a relief of 170,000 euros for the 2026 budget.

The city administration is looking ahead to a challenging year in which the deficit of 105.5 million euros for 2025 becomes a constant concern. Mayor Lindenau will continue to work on solutions to stabilize Lübeck's financial situation while not neglecting important investments. The challenges are many, but he sees approaches that could pave the way for a positive development of the city, as hl-live.de summarizes.