Lübeck is struggling with a deficit: accommodation tax to restructure the budget!

Lübeck is struggling with a deficit: accommodation tax to restructure the budget!

The budget situation of the Hanseatic city of Lübeck promises a particularly challenging time in 2026. With a gigantic deficit of 162.4 million euros, Mayor Jan Lindenau (SPD) and the administration are faced with the urgent task of getting solid budget consolidation underway. 53 measures have already been introduced to reduce the budget by 8.3 million euros. In 2027, this effect could even increase to 12.5 million euros, as ln-online.de reports.

One of the largest sources of income is expected to be the introduction of an overnight stay tax, which is expected to bring around 4 million euros into the coffers annually. This proposal comes from the Greens and was approved by the citizens in September 2023, who would like to examine different options. However, there are legal hurdles: the overnight stay tax and the spa tax may not be levied at the same time. In order to provide clarity here, discussions are currently underway at the state level to change the municipal tax law.

Economic challenges and measures

With a view to the financial situation, the mayor put a budget freeze for the entire administration into effect on July 15, 2024 in order to counteract the threat of financial difficulties in 2024. An annual deficit of 520,700 euros was originally planned, but due to drastically falling allocations from the financial equalization, a deficit of over 50 million euros is on the horizon. According to luebeck.de, investments and personnel measures should remain unaffected by this budget freeze.

The city faces challenges compounded by inflationary trends and weak economic growth. The insight gained is clear: flexibility in budget planning is essential in order to cope with the effects of multiple crises at once. The need to balance savings and high-quality public services for citizens is increasingly emphasized by experts, as made clear in a report by the KGSt kgst.de.

Concrete savings

Various measures are planned to stabilize the budget situation. Among other things, the adjustment of parking fees will bring relief of around 1 million euros. The fees were already staggered by location as of July 1, 2023 and can amount to up to 3.20 euros per hour. Other items on the savings list include:

• Preiserhöhung bei Lübecker Schwimmbädern: 300.000 Euro
• Musik- und Kongresshalle (MuK): 520.000 Euro
• Schließung der Schneiderei Bali/JAW: 400.000 Euro
• Einsparungen beim Mietkostenzuschuss für Tagespflegepersonen: 370.000 Euro
• Reduzierung der Zeitarbeitskräfte im Ordnungsamt: 100.000 Euro
• Einsparungen beim Theater: 100.000 Euro
• Marketingmaßnahmen der Lübeck und Travemünde Marketing GmbH: 100.000 Euro
• Streichung des Modellprojektes Ganztag in der Kinder- und Jugendarbeit: 100.000 Euro

In the area of ​​cuts, parliamentary group grants of 86,000 euros are being discussed, as is a removal of reimbursement for contraceptives amounting to 58,900 euros and welcome money for students amounting to 75,000 euros. Admission prices for museums and subsidies for the Travemünde Week will also be increased or eliminated.

The situation once again offers scope for discussions, including about the closure of the Heiligen-Geist-Hospital retirement home, which is being thrown around without a clear savings amount. The critical voices of the CDU and the Greens on the consolidation list point out that serious savings seem to have only been achieved to a limited extent so far.

On November 6th there will be a decision by the Lübeck citizens on the budget. It remains to be seen how the fall will be financially organized for Lübeck.