Copenhagen budget raises parking fees and funds housing package

Copenhagen’s 2027 budget will bring higher parking fees, a new housing package and trials of part-time childcare places, DR reports.

Here are five key priorities in the agreement.

Parking will become more expensive

Resident parking permits will cost more in 2027. The increase for electric cars will be 670 kroner a year compared with 2026.

For petrol and diesel cars, the increase will be 170, 270, 1,085 or 3,715 kroner, depending on the vehicle’s fuel consumption. A resident permit will therefore cost 1,905 kroner a year for an electric car and 6,305 kroner for the most expensive petrol and diesel cars.

Alternative entered the negotiations seeking a fivefold increase in resident permit prices, arguing that this would reduce the number of cars, congestion and air pollution. The agreed increase is lower.

Housing package includes several measures

“My most important task as lord mayor is to ensure that we get more homes for ordinary Copenhageners,” Sisse Marie Welling of the Socialist People’s Party said during the budget presentation.

The budget does not include the 10 billion kroner she proposed during last year’s municipal election campaign for buying properties and renting them out cheaply.

Instead, 117 million kroner has been allocated for a housing package. The money will, among other things, support Copenhagen tenants who want to establish cooperative housing associations if their property is put up for sale.

A housing patrol will also be created to fine people who illegally rent out their apartments for more than the permitted 70 days a year.

Municipal tax will remain unchanged

Copenhagen has the lowest municipal tax rate in Denmark. Several centre-right parties wanted it reduced further, arguing that living in the city is expensive and that the municipality has substantial financial reserves.

However, tax cuts are not a priority in this year’s budget. The municipal tax rate will therefore remain at 23.39 per cent.

Trial of part-time childcare places

Funding has been allocated for trials of cheaper part-time places over the coming years in one quarter of Copenhagen’s childcare institutions.

Under the proposal, the institutions will receive resources equivalent to a full-time place even when a child attends part-time. Politicians will later discuss whether the model can improve staffing levels for all children at participating institutions and help ensure that enough staff are available.

Illegal waiting list to be cleared

Copenhagen’s social services are under financial pressure. For several years, the municipality has kept vulnerable residents waiting too long for places in supported housing. This is illegal.

More than 200 million kroner has been allocated to buy places and clear the waiting list. The funding applies not only to 2027 but also to 2028, 2029 and 2030.

Rising prices for supported housing places are adding to the pressure. During the budget presentation at Copenhagen City Hall, social services mayor Karina Vestergård Madsen of the Red-Green Alliance criticised the national parliament.

“Christiansborg has left the country’s municipalities with a huge bill,” she said.

The budget agreement includes the Socialist People’s Party, the Red-Green Alliance, the Social Democrats, the Danish Social Liberal Party, Venstre, the Liberal Alliance, Alternative and the Danish People’s Party.

The Conservative People’s Party and the Free Greens are not part of the agreement.