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.”

The Taxpayers’ Union is slamming the Department of Internal Affairs for wasting nearly $23 million of taxpayer money on a failed IT upgrade for the Births, Deaths and Marriages registry — a project that’s now been abandoned with nothing to show for it.

“Time and again, government departments dive headfirst into flashy IT projects, only to blow the budget, miss deadlines, and quietly pull the plug, with taxpayers left holding the bill,” said Taxpayers’ Union spokesperson Tory Relf.

“This isn’t just general bureaucratic waste, it’s a chronic failure in how the public service delivers IT,” Relf said. “Whether it’s Internal Affairs now or MFAT’s $33 million cloud project last year, the story is always the same: massive overspending, scope creep, no accountability, and zero results.”

"IT projects have become some of the worst offenders in the public sector when it comes to fiscal irresponsibility. Yet officials keep launching these bloated projects without the capability to manage them and taxpayers are forced to pick up the tab,” said Relf.

“Every time a department fails like this, they get a second chance — but taxpayers don’t get their money back. Writing off tens of millions and calling it a ‘lesson learned’ isn’t good enough. This cycle of failure must end.”