Council boosts bike lane funding in final budget after community pressure

The City of Melbourne has bowed to public pressure and boosted its funding commitment for cycling infrastructure, voting at its June 30 council meeting to increase its four-year bike budget to around $15 million.

The change comes after weeks of backlash from cycling advocates and community members, with more than 1450 budget submissions specifically focused on bike infrastructure – a record response.

Under the revised 2025-29 plan, council will now allocate:

• $2. 94 million in 2025–26 (including a newly approved $200,000 boost on top of the draft allocation)
• $4 million in 2026–27 (adding $2.5 million more than initially proposed)
• $3 million in 2027–28 (an extra $500,000)
• $4.5 million in 2028–29 (up $1.5 million).

The boost means next year’s spend will be roughly $3 million, comparable to last year, with the new $200,000 allocated to fast-tracking protected lanes on Queensberry St in Carlton.

“Council on Monday voted to increase its spend on bike lanes by $5 million following significant community feedback during the budget process,” Lord Mayor Nick Reece said.

“The City of Melbourne will now invest $15 million in cycling infrastructure over the 2025–29 Council term – creating safer roads for everyone.”

“The updated four-year investment is in line with the previous council term spend – and is a solid investment in protecting riders across our city.”

The council’s draft budget released in May had flagged a reduced commitment of around $9 million over four years, sparking fears it would undermine its 2030 Transport Strategy promise to deliver 50 kilometres of new protected bike lanes on local roads and 40 kilometres on state-managed routes.

Critics argued that the budget prioritised reconfiguring existing lanes over building new ones, failing to address urgent safety gaps in the network.

During heated public submissions at the June 17 committee meeting, local cyclists challenged the cuts, with many calling for at least $5 million per year to keep pace with demand.

The Lord Mayor has previously defended the city’s approach, saying changes in budget presentation aimed to show only council’s direct funding while separating external grants. For example, while the bike budget line excludes projected state or federal contributions, other projects like the University Square redevelopment list secured grant funding alongside council contributions.

In 2025–26, University Square is allocated $3 million in grants and $9.7 million from council in 2026–27.

The council has argued that because bike funding often depends on variable grant rounds, they want to avoid overpromising by excluding those estimates from the council’s direct commitment lines.

However, campaigners say this approach makes it harder to track total bike spending and plan the delivery of the promised bike network.

Between 2020 and 2025, the City of Melbourne delivered 31 kilometres of protected lanes, with 18.7 kilometres in the last year alone via adjustable infrastructure. The Victorian Government has separately funded new lanes on St Kilda Rd and Grattan St as part of Metro Tunnel works, with another 800 metres to come in the next year.

The council says the new budget commitment will deliver more of these safer, physically protected routes, helping reduce collisions and encouraging more people to cycle.

The final budget also retains other major infrastructure commitments, including the University Square redevelopment, with construction expected to begin after the Parkville Metro Station opens. •