Following an extensive review of budgets, Wellington City Council has agreed a package of proposed savings to bring the forecast 2026/27 rates increase down to 7.4 percent, from the 12.7 percent increase originally planned.

At the Council’s Te Taurapa Planning and Finance Committee yesterday (12 March 2026), the Mayor, Councillors and Pou Iwi approved the 2026/27 Annual Plan draft budget, which will go to the community for consultation in April.

Earlier savings proposals, presented to the Council in December 2025, had reduced the forecast increase to 9.4 percent. Thursday’s committee approved a series of further proposals from Ngā Kaihoe Pūtea Revenue and Financial Value Review Working Group to help address the fiscal environment in which the Council is operating. The Group made 35 proposals – a mix of savings, revenue and exploratory options – to bring the proposed increase down to 7.4 percent.

The Committee Chair, Councillor Diane Calvert, said: “This is the lowest proposed rates increase in six years and reflects a concerted effort to find savings across the Council.

“Increased inflation, insurance and depreciation costs continue to put pressure on budgets, and we face a range of infrastructure issues that require significant investment.

“But with households under pressure, we can’t simply pass those costs on. We need to be rigorous in our savings efforts and ready to make tough decisions when it comes to spending.”

Mayor Andrew Little added: “At last year’s local election, we heard a clear message from Wellingtonians: rates affordability is a major issue for our communities. We are determined to respond to that message and operate responsibly within our means.”

Community consultation on the 2026/27 Annual Plan will run from 10 April to 10 May.

To sign up for updates, visit letstalk.wellington.govt.nz

Important note – separate rates and water bills from July 2026

Rates bills are changing this year. From 1 July 2026, Wellington City Council rates will no longer include water charges. Residents will be billed for water services by a new, separate, organisation called Taiki Wai.

The proposed 7.4 percent average increase detailed above relates to the remaining Wellington City Council rates (now excluding water). It includes 1.4 percent for the Sludge Levy. Water bills will be set by Tiaki Wai.

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