Vantaa says worst of financial strain has passed as savings continue

Vantaa expects its finances to improve, although the city still forecasts a deficit of more than 58 million euros for next year. City manager Pekka Timonen presented the budget proposal on Monday, Yle reported.

The city plans to balance its finances by 39 million euros next year. Of that amount, 29 million euros is expected to come from ongoing measures, including budget balancing across departments, income from companies in the city group and personnel cost savings agreed in autumn 2026 negotiations.

Vantaa’s finances have been weighed down by weak economic and employment conditions, slow growth in tax revenue and limited housing construction, Timonen said. The transfer of employment services to municipalities and persistently high unemployment have also increased the city’s costs. Vantaa’s unemployment rate was more than 14 per cent in August, while long-term unemployment reached a record high.

The city’s balancing programme, announced in September 2025, runs throughout the current council term. Vantaa aims to bring income and spending into balance by 2029 at the latest.

Timonen said the city’s financial position appeared to have passed its most difficult phase. This year’s result is expected to be better than forecast and clearly stronger than in 2025, which he said indicated that the city’s measures were having an effect.

Tax rates will remain unchanged. The income tax rate is 6.4 per cent and the general property tax rate is 1.28 per cent.

Despite the tight financial situation, Vantaa will continue major investments. The city has allocated 255 million euros next year for the Vantaa tram, which is under construction. The Elmo swimming pool, Aviapolis upper secondary school and Myyrmäki’s Oivallusten talo are also due to be completed next year, along with several school and daycare projects.

The city council is expected to decide on the budget in mid-December.