Council plans $2 million push to light up city laneways

The City of Melbourne is planning a major new investment to brighten some of the CBD’s best-known streets and laneways, with a record $2 million allocation for decorative lighting proposed in its draft 2026-27 budget.

The funding would expand the council’s Light Up Melbourne project, with new lighting earmarked for more than half a dozen locations across the city, including Hosier Lane, Collins St and Hardware Lane, as well as hospitality hotspots such as Flinders Lane, Little Bourke St and Healeys Lane.

The move builds on Lord Mayor Nick Reece’s 2024 election pledge to “light up Melbourne” under a broader $10 million plan aimed at boosting tourism, supporting the night-time economy and making the city feel safer after dark.

That earlier commitment included an $8 million Light Your Laneway program over four years, focused on installing designer decorative lighting across 20 laneways, along with a $2 million Brighter Buildings grants program to help illuminate notable building facades.

Now, the first major budget backing for that vision is beginning to take shape.

In a statement ahead of the release of the draft budget, Cr Reece said the lighting investment would help strengthen Melbourne’s standing as a night-time capital while improving the city’s atmosphere and appeal.

“From our iconic laneways to the Paris end of Collins Street, we’re investing in the latest lighting technology to secure Melbourne’s status as a nighttime capital and create a major visitor drawcard,” he said.

The lighting works are expected to focus on decorative and catenary-style treatments, building on installations already seen in parts of Bourke, Lonsdale and Little Collins streets.

Catenary lighting, which suspends strands of lights across streets and laneways, has become a notable part of the council’s recent efforts to improve city ambience and encourage more evening activity in hospitality precincts.

For the CBD, the latest proposal is significant not only as a visual upgrade but as part of a broader strategy around economic activation. The council sees lighting as a relatively simple but high-impact way to improve perceptions of safety, draw people into the city at night and support restaurants, bars and retailers.

The draft budget also includes a $200,000 allocation for business precinct revitalisation, with council to work alongside several precinct groups to energise key parts of the city, as well as $26 million for flagship events and $2.6 million to upgrade banner pole infrastructure to keep streets event-ready year-round.

Tourism and Events portfolio head Cr Mark Scott said the city was continuing to back the attractions and experiences that bring people into Melbourne.

“Every event offers something unique, but this year we’re especially focused on strengthening our multicultural events and delivering more festivals across Melbourne,” he said.

The City of Melbourne’s draft budget will be formally released on March 31, with public consultation to run until April 28.