'Beaten to death': 7.9% rates hike takes effect across Auckland

A controversial 7.9% rates increase has been officially signed off by Auckland Council and takes effect today.

The hike is the biggest in 11 years and will add about $320 to the annual rates bill for an average Auckland home.

It divided the council, sparking claims of a toxic culture and prompting a septic public backlash which included death threats to those who voted for the increase.

Two of the threats were referred to police.

The rates increase, which is largely to pay for increased costs associated with the City Rail Link (CRL) project, was formally adopted yesterday by the council’s governing board when it approved the 2026/27 annual plan.

In contrast to fractious earlier debates that sparked walk outs by Howick ward councillor Bo Burns and claims of bullying and dysfunction, the agenda item was passed with little fanfare or grandstanding, shortly before the meeting was adjourned for lunch.

In a statement today, Mayor Wayne Brown said: “Thank goodness for that, this one’s been beaten to death”.

Auckland Mayor Wayne Brown talks with Herald journalist Katie Bradford about social media abuse aimed at councillors. Photo / Dean Purcell

“This is what we proposed and what a majority of the public and local boards agreed on two years ago: a zero rates rise, plus a train set. And we are managing to stick to it in this economy, in this global volatility.

“While times are tough, we are maintaining strict internal discipline to protect everyday services without racking up costly debt.”

Brown said the annual plan locked in critical financial settings to maintain services, drive efficiencies and fund major infrastructure.

The rates hike “successfully holds the line against intense economic headwinds”.

Faced with global fuel pressures, inflation, and structural funding challenges, Brown said the council navigated an added $213 million budget risk that could have triggered a 15% rates spike.

It had also committed to a $106m savings target - “larger than the entire rates revenue of 54 other councils”.

“This is about investing in Auckland, and we should invest in this stunning harbour city of ours - I don’t want to end up back where it was when I took office, with crumbling pipes around the city leaking.

“I will not do what some other councils have done – defer costs, underfund depreciation, and pass the problem to future generations. I’m glad our plan is working, and that sensible heads around the council table have prevailed.”

Council chief executive Phil Wilson said both the community and financial prudence were front-of-mind.

“We are very mindful of the cost of living challenges our community is facing and, therefore, delivering increased value is an absolute priority in the next 12 months and beyond.”

He said the budget was premised on a “very substantial savings target” and the council absorbing inflationary pressure.

“That is challenging and further efficiencies across the council business are needed to ensure rates deliver more for Aucklanders, across our investments. From public transport and local services to project delivery, we will be seeking out all opportunities to deliver increased value for rates.”

Stinging rebuke

Division and bullying claims spilled out publicly among Auckland councillors last month after Burns launched a stinging rebuke of her council colleagues over what she described as a toxic culture involving bullying, intimidation, hostility and fear.

The Herald also revealed that Wilson had written to councillors to remind them about standards and professional obligations.

It’s understood the situation had come to a head since a controversial vote in May over the 7.9% rates increase divided councillors and triggered a public campaign against the hike by the Ratepayers Alliance.

In a public Facebook post, Burns said she had walked out of several meetings due to the behaviour of her colleagues.

“I believe we need to lift the standard of public discourse and challenge the idea that bad behaviour is somehow normal because it happens in politics. It isn’t,” Burns wrote.

“We should expect better from our leaders, our organisations, our workplaces and ourselves.”

Howick ward councillor Bo Burns.

Burns went to ground after making the post, but some commentators pointed out the irony of her complaining about abusive behaviour and personal attacks, after she was forced to apologise last year for expletive-laden comments about outgoing Auckland councillor Sharon Stewart.

The Herald also revealed that abuse aimed at Auckland politicians had ramped up in recent weeks over the rates issue, including death threats being referred to police.

Brown fired up at social media users and interest groups who he blamed for leading some of the toxic comments, saying there were “dreadful people out there”.

“It’s disgusting and if you go looking for these things with social media, you’ll probably find them about me and my family as well, but I prefer not to look.”

Wilson said councillors had expressed concerns about a “general deterioration in behaviour”, particularly with comments aimed at them on social media.

Much of the abuse was linked to “difficult decisions” on the council’s annual budget, he said.

Lane Nichols is Auckland desk editor for the New Zealand Herald with more than 20 years’ experience in the industry.