Reykjanesbær caps fee increases at 2.5% for 2027

Reykjanesbær’s town council has unanimously backed a proposal to limit increases in the municipality’s general fees to 2.5% in 2027, mbl.is reports.

The council said local authorities, the state and labour market organisations should work together to ease inflationary pressure, help lower interest rates and protect household purchasing power. Reykjanesbær will aim to keep fee increases within the limit despite rising operating costs.

“We simply want to stand with the people in the town,” Mayor Vilhjálmur Árnason said in a statement. Families are facing high interest rates, inflation and rising costs, he said, adding that public authorities should not add to their burden.

The municipality has already reduced construction costs by waiving infrastructure fees, Árnason said.