Opposition warns of cuts in urban development

Household - Opposition warns of cuts in urban development

Urban development cuts remain controversial in Schleswig-Holstein despite a large budget deficit. Opposition leader Serpil Midyatli spoke in the state parliament about an erroneous path of the black-green coalition. "Without urban development funding, there will be vacancies, a lack of housing, and decay in Schleswig-Holstein," said the SPD fraction leader. The coalition wants to save on the backs of municipalities. The funding gives important impulses, municipalities are suffering from the devaluation of inner cities.

Coalition members referred to the budget crisis. "The state must close a budget gap of one billion Euro by 2030," said CDU finance politician Ole Plambeck. "We won't get around savings in the state budget." The opposition accused them of not naming alternatives to saving on urban development. Green deputy Oliver Brandt emphasized that a billion Euro in funding had already flowed in. "The framework conditions force us to set priorities."

Government wants to save

So far, there is only an announcement from the state government that it intends to close the budget gap, in part, through cuts in urban development funding. "It doesn't matter how we do it: We have to save, that's the order of the hour," said Interior Minister Sabine Sütterlin-Waack (CDU). She could not be more specific. "We're right in the middle of budget negotiations for 2025." The coalition wants to present balanced and acceptable budget plans in the fall.

Until 2027, only 54 million Euro will flow from state funds in the north, said Sütterlin-Waack. These funds are long-bound and firmly planned. The funding volume has been continuously increased continuously. The government is weighing and speaking with the municipalities. Urban development funding consists of one third each from the state, federal, and municipal budgets.

Criticism also from FDP and SSW

Ex-Economics Minister Bernd Buchholz (FDP) criticized, "I don't see the savings approach in urban development funding right now for certain reasons." It is also an economic development program. A reduction would further exacerbate the negative trend in the construction industry, not to mention the economic aspect.

Similarly, SSW fraction leader Lars Harms argued. It makes no sense to cut in this area. He spoke of a fatal signal to the construction industry and municipalities. "Cutting spending leads to nothing."

Warnings from Associations

The industry warns of cuts. "Whoever cuts urban development funding is threatening investments and community-oriented infrastructure in the municipalities," said the managing director of the Association of North German Housing Companies (VNW), Andreas Breitner. The share of the state in urban development funding will drop from 19.1 million Euro in the current year to 7.7 million Euro in 2027. "I fear that the municipalities will cut back first on voluntary social services. However, investments in public transportation, fiber optics, and road construction may also be on the chopping block." In addition, fee increases are to be expected.

Whoever shortens the means for urban development, saves at the expense of inner cities, said the managing director of the State Landowners Association Haus & Grund, Alexander Blazek. In this context, particularly investments in the public space are needed to increase the living quality for people.

1. The controversy surrounding urban development cuts and the budget deficit in Schleswig-Holstein extends to the realm of household Living conditions.
2. The FDP, like the SPD, has expressed concern over the coalition's plans to save on urban development funding, viewing it as an abbreviation for economic development.
3. Serpil Midyatli, the opposition leader in the State parliament, emphasizes the importance of urban development funding in preventing vacancies, housing shortages, and urban decay in Schleswig-Holstein.
4. The CDU's finance politician, Ole Plambeck, highlights the need for savings to close a budget deficit of one billion Euro by 2030, which will inevitably impact urban development plans.
5. The role of municipalities in urban development has become a key point of contention, with critics accusing the coalition of placing the burden of savings on municipalities instead of exploring other alternatives.
6. Associations like the Association of North German Housing Companies (VNW) and the State Landowners Association Haus & Grund have issued warnings about the potential consequences of cutting urban development funding, including cuts to social services and investments in infrastructure.
7. The reduction in urban development funding could result in higher fees for urban residents, as municipalities may seek alternative sources of revenue to offset the loss in funding, according to the managing director of the State Landowners Association Haus & Grund, Alexander Blazek.

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