Wellington council confirms lowest rates increase in six years

Wellington City Council has officially adopted its 2026/27 Annual Plan and budget, unveiling its lowest rates increase in six years at 5.9%.

Mayor Andrew Little said the Council budget for the coming year makes good on a personal commitment to get the organisation’s spending under control, while protecting the community services and facilities Wellingtonians rely on.

“Wellingtonians will have the lowest average rates increase in six years at 5.9% because we have identified $31.7 million in savings. This is a significantly lower increase than the 12.6% forecast rates increase I inherited,” he said.

The 5.9% rates increase includes a 2% increase in the City’s sludge levy.

“Every Councillor and Pou Iwi has contributed to agreeing the Annual Plan and budget. I also acknowledge the efforts of council staff to identify ways to maintain services while seeking savings,” said the Mayor.

Chair of the Council’s Te Taurapa City Planning and Finance Committee, Councillor Diane Calvert says the Annual Plan is a clear reset of council’s budget, guided by clear feedback from Wellingtonians.

“It is a detailed, achievable plan based on what councillors hear every day from people across Wellington, the frustrations, the ideas, and the strong desire to see our city thrive again,” says Cr Calvert.

Adopting the Annual Plan confirms the following decisions:

  • A new rate for short term accommodation properties, set at 2.6 times the base rate;
  • Funding has been confirmed for cycleway improvements in Bunny Street and Brooklyn;
  • Contaminated land and asbestos disposal fees will increase over the next three years to bring them into line with the rest of the region;
  • Cremation fees will increase by inflation only, following public feedback;
  • Maintaining current fees for casual swimming pool entry for children.

The Council has also agreed to consult with the Wellington public about potential changes to its rating system, from a Capital Value rating system to a Land Value rating system.

It will also seek views on whether to reduce the commercial rates differential, which is currently 3.7, over the course of the 2027–37 Long-term Plan.

“Council also agreed to examine the way we levy rates in Wellington. We will seek the public’s views on how we levy rates that are fair on residents and businesses, and consider the impacts of our rating system on economic growth and job creation,” says Mayor Little.

Following the adoption of the Annual Plan, changes to fees and user charges have also been implemented. Most fees and user charges will increase, effective 1 July.

View the Full schedule of fees and charges.

Latest Articles