Denmark allocates 2.5 billion kroner to municipalities for 2025, raising concerns among mayors

The government of Denmark announced an additional allocation of 2.5 billion kroner to municipalities for 2025, a decision welcomed by many mayors. However, there is significant concern regarding its nature as a one-time grant. Several mayors argue that this temporary funding hinders long-term planning for essential services such as education and elderly care.

Pernille Beckmann, the mayor of Greve Municipality, expressed her gratitude, noting that her municipality will receive 4 million kroner. Still, she emphasized the challenges this poses for strategic planning, stating, “We need to focus on prevention beyond just one year.”

Similarly, Birgit Stenbak Hansen, the mayor of Frederikshavn, highlighted the limitations of a one-time allocation, despite receiving a substantial 30.6 million kroner. She indicated that this funding would not allow them to maintain services in the future. “Even though we mitigate short-term financial pressures in 2025, we’re already facing the need for cuts in 2026,” she remarked.

Moreover, mayors from Vesthimmerland and Jammerbugt also expressed concerns about the short-term nature of the funding. Arne Ullum, chief editor at NB Økonomi, understands the municipalities’ worries and acknowledges the government’s desire to secure a foundation for welfare and find a long-term solution.

This funding announcement follows a previous agreement where the government and the Danish Municipalities Association agreed to provide an additional 3.4 billion kroner for welfare in the coming year.

Benny Engelbrecht, the finance spokesman for the Social Democrats, recognized that the current solution only addresses fiscal concerns for 2025. He assured municipalities that issues affecting over 30 communities would be addressed well in advance of budget negotiations for 2026.