Watch: 'It's a no-brainer' – Auckland Mayor Phil Goff says city must spend more on fixing traffic woes, as petrol tax looms

Auckland Council is announcing their proposed ten-year budget this morning, with transport being a key focus. 

The City Council is set to spend $11 billion on infrastructure in the sector over the next decade.

It's expected a fuel tax of 10 cents a litre will be introduced, which will rise to 11.5 cents with GST, in place of the transport levy on rates. 

Auckland Mayor Phil Goff is hoping the investment will relieve pressure on traffic congestion, housing and the environment. 

"We have under-invested in infrastructure for six or seven years," he said. 

Mr Goff said there are 800 extra cars a week on the road and putting the money into infrastructure is a "no-brainer." 

"We've got a choice, we can do nothing about that or we can start to tackle that problem.

"We’ve got to start tackling infrastructure, more public transport, better roads and more active modes of transport." 

The investment will mean rate increases are set to stay at 2.5 per cent over the next two years, before rising to 3.5 per cent after that.