Brisbane City Council to slash spending by 10 per cent as cost hikes bite

The promises over future green bridges are in doubt as escalating increases in construction costs force Brisbane City Council to cut spending immediately by 10 per cent.

This development comes only three months after the council’s 2023 budget and in the lead-up to the March 2024 council elections.

Escalating construction costs of major projects like the Kangaroo Point green bridge have forced a 10 per cent council spending cut.Credit: Brisbane City Council

While there will be no forced staff redundancies or impact on rubbish collection, BCC has axed the shade cover over the Victoria Bridge - saving $5 million - cancelled Brisbane Metro’s 1 per cent public art component, and indefinitely delayed its two Toowong to West End green bridges.

BCC in 2019 allocated $550 million for five green bridges - with additional federal funds - but has stopped at two as costs jump on the Kangaroo Point and Breakfast Creek bridges.

There will also be a 10 per cent cut in travel, advertising and use of paid consultants, while the budget of council’s ward offices will also be cut by 10 per cent.

Brisbane’s establishment and coordination committee, also known as civic cabinet, on Monday made the decision after reviewing escalating fuel, construction and estimated projects cost increases. All areas are under the spotlight.

Where Brisbane’s costs are increasing

Since Brisbane’s June 2020-21 budget

• fuel has increased by 62.1 per cent
• bitumen by 40.7 per cent
• building by 28.1 per cent
• gas by 33.1 per cent
• road and bridge construction by 18.1 per cent, and
• heavy and civil engineering construction by 17.4 per cent
• Brisbane household cost of living increased by 1 per cent in the June quarter to 6.3 per cent annually.

Source: Brisbane City Council

Lord Mayor Adrian Schrinner on Monday said civic cabinet had endorsed the 10 per cent spending cut until the end of the 2023-24 financial year from their $4.3 billion budget.

“We’re being upfront about this tough decision but make no apology for prioritising keeping costs down for households,” he said.

“Just like many households, we’re making the responsible decision to reduce council spending by 10 per cent to avoid driving up costs for [Brisbane’s 1.2 million] residents.”

Brisbane Lord Mayor Adrian Schrinner said the council had weathered the February 2022 floods and the COVID-19 pandemic without increasing household rates in 2023.Credit: Brisbane Times

The council opposition has for several years been critical of  council’s spending and use of consultants, but a mayoral spokesman said construction costs were escalating.

Three major BCC projects – the Kangaroo Point Green Bridge, the Milton Road roundabout and the city’s signature Metro busway project – have all seen costs jump alarmingly.

Schrinner said council had weathered the February 2022 floods and the COVID-19 pandemic and kept household rate increases (3.5 per cent) to half the inflation rate (7 per cent) in June 2023.

BCC announced a 3.45 per cent average rate increase on their $4.3 billion 2023-24 annual budget in June.

How the Queensland cities’ 2022-23 annual minimum rate and average rates increase compare

• Brisbane: $847 - up 3.5 per cent.
• Logan: $1068 - up 4.09 per cent
• Ipswich: $1112 - up 5.5 per cent
• Moreton Bay: $1149 - up 4.45 per cent 
• Redland Bay: $1184 - up 4.65 per cent
• Gold Coast: $1224 - up 5.5 per cent
• Scenic Rim: $1244 - up 7.9 per cent
• Sunshine Coast: $1406 - up 5.5 per cent.

In the 2023-24 budget, the city’s $2.38 billion road and transport program – including the $550 million green bridges and the $1.7 billion Brisbane Metro mega bus – was 55 per cent of the budget.

The Kangaroo Point green bridge has increased in price from $190 million to $298 million, while the cost of Brisbane Metro - while it has increased in scope - has lifted from $980 million to $1.4 billion and now $1.7 billion, including extra federal funds and a new station at the Gabba.

There is speculation the original $67 million cost of the Breakfast Creek bridge has also increased. Its completion date has been pushed back from 2023 into 2024.

Fiona Cunningham, Brisbane civic cabinet’s chair for finance, said global inflation was having a significant impact on the cost of the projects.

“Any decision to just keep spending in these circumstances would be irresponsible and result in significant future rate rises for Brisbane households and our team is not prepared to do that.”

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