The BERL local government cost index 2026 is now available to view on the Taituarā Council Toolkit.
Each year Taituarā commissions economic research consultancy BERL Adjustors to produce a report to assist local authorities in their planning. The final 2026 report is now available to download on the Taituarā Council Toolkit.
The annual report provides councils with updated forecasts of the costs they can expect to face over the next decade, helping inform budgeting, infrastructure investment and long-term financial planning.
This year’s report forecasts some significant cost increases in 2026, including:
- Transport: 12.5%
- Roading: 6.2%
- Water infrastructure: 5.4%
- Waste: 5.0%
Higher global fuel and energy prices, driven in part by geopolitical tensions in the Middle East, are contributing to these increases.
While BERL expects this spike to be temporary, with cost growth returning towards longer-term trends from 2027, it warns that councils should prepare for greater volatility and uncertainty in future costs.
Despite these short-term pressures, the longer-term outlook remains relatively stable. Overall local government costs are forecast to increase by an average of 2.37% annually between 2026 and 2036, only marginally higher than the 2.36% forecast in last year’s report.
However, BERL emphasises that slower cost growth does not mean costs are falling. The significant price increases experienced between 2021 and 2023 remain built into the cost of delivering council services and infrastructure.
A useful tool for council planning
Unlike the Consumer Price Index (CPI), which measures changes in household costs, the LGCI reflects the goods and services councils actually purchase, including labour, construction, maintenance and infrastructure.
The report provides separate forecasts for key council activities, including roading, transport, water, waste, community services, and planning and regulation, as well as operating and capital expenditure.
These forecasts give councils a more relevant basis for planning future expenditure, rather than relying solely on general inflation measures.
With economic uncertainty expected to continue, BERL also encourages councils to plan for a wider range of possible cost outcomes, particularly when making long-term investment decisions.
View and download the Local Government Cost Index 2026 on the Taituarā Council Toolkit
All those with a council email address can access resources on the Council Toolkit by creating or updating their free myTaituarā account.
