25,000 Back a Rates Cap But Government Delay Lets Councils Keep Spending

The Taxpayers’ Union is urging the Government to fast-track legislation to cap council rate hikes, following new figures from Stats NZ showing runaway local government spendingand the risk of even higher rates next year if action isn’t taken now.

Sam Warren, Local Government Campaigns Manager, said:

“Council spending is out of control and ratepayers are picking up the bill. This new data shows exactly why we need a rates cap now, not later.”

"Total council spending rose 7.6 percent to $18.41 billion compared to March 2024, yet employee costs have jumped 9.9 percent and interest payments soared 16.3 percent. It’s clear councils aren’t exercising financial discipline."

“More than 25,000 Kiwis have backed our petition to cap rates to inflation. The public gets it – and the Government is starting to as well.”

“The PM backed a rates cap on Newstalk ZB this morning, but the current timeline delays legislation until at least 2026, meaning councils can raise rates unchecked for another full year."

"Let's remember, the previous Local Government Minister, Simeon Brown, resolved to pass rates capping into legislation this year."

“Any later is too late. Councils are locking in bloated budgets right now. If we wait, ratepayers will keep getting hammered and blame will lie at the feet of councils and the Government.”

"The Government must act to Cap Rates Now and stop the spiral.”