The decision to scrap Wellington's major infrastructure project is coming as no surprise.

In a joint statement, the Government, Wellington City Council and the regional council announced they'd agreed to dissolve the plans, making way for projects including the Basin upgrade and a second Mt Victoria Tunnel.

The Golden Mile plans will remain solely with the city council.

Newstalk ZB Political Editor Jason Walls says the news is predictable.

"The Nats said that this is something they were going to scrap as soon as they got in, and they were going to figure out new ways to do it."

Walls says he hopes the Government will figure something out, and not just pay consultants.

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