Developments in the economy and operating environment pose risks to the city corporate group

The rapidly growing and changing population structure, the increasing number of children and young people, and the ageing of the population increase the need for services and raise the city’s operational and investment expenditure at a faster rate than revenue is generated. The city corporate group’s investment programme is based on the Espoo Story, focusing investment priorities on the development of areas, the improvement of transport connections, and the construction and renovation of premises. The budget-balancing targets of the Economically Sustainable Espoo programme carried out between 2021 and 2025 were partially achieved. The structural balance of the city’s finances must be secured to ensure the achievement of the Espoo Story’s goals in an uncertain economic situation. 

The Audit Committee assessed the achievement of the operational and financial objectives set by the City Council for 2025 across the city corporate group. Among the objectives that were not achieved, those related to children and young people are particularly noticeable. Experiences of how bullying is addressed as well as personal wellbeing at school have deteriorated. Based on these results, educational institutions must address cases of bullying, harassment, discrimination and violence immediately and more firmly than before.

The participation rate of children in early childhood education is high, and the satisfaction of staff and directors with pedagogical activities remains at a good level. Guardians are satisfied with children’s involvement and the quality of activities in early childhood education and pre-primary education. However, the organisation of early childhood education is hindered by the insufficiency of the service network in relation to demand. To strengthen the capacity of the service network, the Early Childhood Education Unit must contribute to increasing the share of private early childhood education services, in line with the City Council’s objective.

The Basic Education Unit must ensure that the reform of support for learning and school attendance does not bring unnecessary changes to or negatively impact pupils’ daily school life. Resources must meet the needs of inclusion and be allocated fairly among schools according to their needs.

The city must ensure, in cooperation with the Western Uusimaa Wellbeing Services County, organisations and associations, that residents are provided with high‑quality and cost‑effective services that promote health and wellbeing. Substance abuse prevention in schools must be strengthened through up‑to‑date information on substance abuse, the presence of trusted adults, and by raising awareness of substance abuse and mental health services as part of student welfare services.

The city has only a limited number of available plots for industrial and commercial needs. To increase workplace self-sufficiency, the Economic Development Unit and Enter Espoo Oy must invest in ensuring that the space and land needs of companies and entrepreneurs are met.

The annual target set in the housing and land use principles for the transfer of detached house plots was not achieved in 2025, as the city does not have enough plots ready for construction. Units within the Urban Environment Sector must intensify their cooperation and measures in land acquisition, land use planning, and municipal infrastructure construction to ensure that plots can be allocated annually for various purposes, in line with the detached house plot target set by the City Council and overall plot demand.

The Building Control Unit’s permit processes must be developed further, including improving the customer experience and the consistency of service quality, enhancing guidance and advisory services, and accelerating the permit process to comply with the requirements of the new Construction Act. Operations must be developed so that the Building Control Unit has the capacity to process all permit applications within the time limits required by law, while also improving the predictability and transparency of processing times. Monitoring of customer feedback and development measures must be continued.

In addition to the matters presented above, the Audit Committee’s 2025 assessment programme included, among other things, a review of the city’s personnel key figures and an assessment of the sustainability of procurements carried out by the Procurement Centre. Within the Sector for Economic Development, Employment, Sports and Culture, the measures taken to improve the safety of public beaches in Espoo were assessed. Within the Growth and Learning Sector, preparatory education as well as afternoon activities and care were assessed. Within the Urban Environment Sector, water protection measures, as well as energy efficiency and the use of renewable energy in the city’s properties, were also assessed. In addition, the implementation of the ownership steering targets set for the Helsinki Region Environmental Services Authority was assessed.

The assessments and the related conclusions and recommendations can be found in the 2025 assessment report (available in Finnish and Swedish) www.espoo.fi/arviointikertomus.

For further information, please contact Jouni J. Särkijärvi, Chair of the Audit Committee, tel. +358 40 5164951. The assessment report was submitted to the Chair of the City Council on 4 May 2026.