Helsinki reaches negotiation result on Mayor’s 2026 budget proposal

Negotiations between the City Board’s political groups on the City of Helsinki’s 2026 budget proposal have concluded. The result of the negotiations was approved by each of the City Board's political groups: the National Coalition Party, the Social Democratic Party, the Greens, the Left Alliance and the Swedish People’s Party.

"I would like to thank all of the groups that participated in the negotiations for their goodwill and focus towards reaching a solution. The final result of our negotiations demonstrates the City Board groups’ strong commitment to our new City Strategy. It’s great that many of our common goals for improving the everyday lives of Helsinki residents will be implemented already in the first budget of the council term,” said Mayor of Helsinki Daniel Sazonov. 

Excerpts from the updated Mayor’s budget proposal:

The budget focuses on implementation of the strategic priorities found in the Helsinki City Strategy, which was approved in August. These priorities are reflected in budget allocations to services for children and young people, primary schools, healthcare and measures to boost the city’s vitality.

According to the budget proposal, Municipal Helsinki’s external operating expenses for 2026 will amount to EUR 3 479.7 million. The annual margin will amount to EUR 459.8 million and the financial period result will be EUR 92.7 million. The annual margin will finance the city’s investments, which under the current proposal will amount to EUR 1 063.8 million in 2026. The share of internal financing for investments will be 44 per cent in 2026, the same amount seen in 2025. 

The budget proposal calls for no tax increases in 2026.

Central Administration:

The operating expenses of the city’s Central Administration will rise from 2025’s EUR 513.4 million to EUR 515.9 million in 2026. This translates into an increase of EUR 2.5 million, or 0.5 per cent.

The budget proposal specifically focuses on improving employment and boosting the city’s vitality. Resources of the Helsinki Employment Services municipal enterprise and vocational education and training will be increased to meet the growing need amid rising unemployment and to secure sufficient high-quality services. The city’s high-profile investment plan will seek to countercyclically revive the construction industry in particular. 

The city is also prepared to capitalize its Growth and Vitality Fund in order to secure Helsinki’s work in this area. Plans are also in place to continue 2025’s increased investment in the marketing of tourism into 2026.

Municipal Helsinki’s salary development programme will also continue in 2026. The salary development programme will focus in particular on implementing the level pay model and targeting lower pay grade employees of municipal services that help the city’s most vulnerable residents.

Urban Environment Division:

The Urban Environment Division's operating expenses will grow from 2025’s EUR 1 089.6 million to EUR 1 191.2 million. This is an increase of EUR 101.6 million, or 9.3 per cent. EUR 19 million of the increase in expenditures will result from accounting changes and EUR 49.2 million from an increase in the city’s contribution to Helsinki Region Transport (HSL). 

The Urban Environment Division will continue its work to prevent segregation, in line with the Helsinki City Strategy. The budget proposal also allocates resources for high-quality maintenance and cleaning of the city’s streets, parks and squares. It also promotes several ambitious urban development projects, such as the transformation of the Hanasaari power plant area. Sufficient resources to support nature conservation efforts have also been earmarked. 

Education Division:

The Education Division’s operational expenses will rise from the 2025 budget proposal’s EUR 1 606.2 million allocation to EUR 1 699.1 million. This translates into an increase of EUR 92.9 million, or 5.8 per cent.

In line with the City Strategy, the 2026 budget proposal for the Education Division prioritises resources for primary schools and early childhood education. This is reflected in next year’s budget as additional funding will be allocated for printed study materials, more hours of first language instruction, smaller primary school class sizes, and allocations to early childhood education funding that will focus in particular on improving substitute availability.

Culture and Leisure Division:

The operating expenses of the city’s Culture and Leisure Division will rise from the 2025 budget’s EUR 317.9 million to EUR 335.5 million. This is an increase of EUR 17.6 million, or 5.5 per cent.

The proposed budget for the Culture and Leisure Division will allocate funding to secure basic services and targeted appropriation increases. This includes free admission to the city's swimming halls on weekdays between 11.00 and 15.00 for people over the age of 68 as well as measures promoting physical activity. More swimming instruction will also be provided to children and young people. The programme that provides Summer Job Vouchers to schoolchildren will be expanded to include first-year students at upper secondary schools and a Youth Entrepreneur Voucher will also be introduced.

Social Services, Health Care and Rescue Services Division:

The operating expenses of the city’s Social Services, Health Care and Rescue Services Division will rise from the 2025 budget’s EUR 2 321.4 million to EUR 2 425.2 million in 2026. This is an increase of EUR 103.8 million, or 4.5 per cent. The principle of state financing is applied for the provision of social, health and rescue services. The services are financed with funding allocated to Helsinki by the state and the division’s own income.

In 2026, the city’s social, health and rescue services will focus on speeding up access to non-urgent care and the implementation of a personal doctor model. Implementation of our ambitious therapy guarantee for children and young people will also continue. Measures to address the drug situation that were initiated this autumn will be continued and a separate allocation has been earmarked to bolster these efforts. A programme to eliminate Hepatitis C will also be implemented in the coming year.

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Mayor Sazonov will next present the budget proposal resulting from the negotiations to the City Board, after which it will proceed to the City Council. The City Council will grant final approval of the budget and tax rates for 2026.