Commenting on this, Taxpayers’ Union Local Government Campaigns Manager Sam Warren said:

“There’s no doubt at all we need rates cap, but clearly we can’t afford to wait for another year of double-digit rates hikes.”

“Months and years of dysfunction have come to a crescendo. It’s a crushing decision while locals continue to suffer the heavy cost of poor decisions and planning by out-of-touch councillors.”

“$2.3 million on a light-up toilet block, hundreds of millions on cycleways and the not-so-Golden Mile, and a $563,000 bike rack outside the Mayor’s office have lead to rates soaring 47 percent in just three years.”

“There’s a good reason Tory Whanau received a ‘Lifetime Achievement in Waste’ Award at the annual Taxpayers’ Union Jonesie Awards earlier this year, and at this rate she’s on for a second one.”

“Wellington City Council cannot bring itself to prioritise ratepayers. It’s time to change the law now and force their hand.”

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 welcoming Local Government Minister Simon Watts’ commitment to rates capping made last night in Wellington but is urging him to expedite the policy. The Union warns that continued delays will undermine public confidence and emboldening opponents of reform such as Local Government New Zealand (LGNZ).

Taxpayers’ Union Local Government Campaigns Manager, Sam Warren, said:

“More than 25,000 New Zealanders have already signed the Taxpayers’ Union’s Cap Rates Now petition. It’s time for Watts to listen – now, not later.”

“Only opening for consultation at the end of this year is simply not good enough. Polling shows that Kiwis are losing trust in National to tackle the cost-of-living crisis and with this slow response, we can see why. A primary driver of the cost of living is out of control rates, which have increased on average by more than a third since 2022.”

“The timeframe announced by Watts also means that voters are going into the local elections in October blind to what rates could or could not be, undermining local democracy. LGNZ know this, which is why they have been throwing sand in the gears to try and delay the policy.”

“Minister Watts is complicating what should be a straightforward fix. The policy work can and should be done within months, not dragged out to suit the bureaucrats and lobby groups like LGNZ who benefit from the status quo.”

The New Zealand Taxpayers' Union is welcoming Federated Farmers’ call for voters to back candidates this October who commit to capping rates hikes at inflation.

Taxpayers’ Union spokesman James Ross said:

“Rates bills went up 15 percent on average last year. Farmers just like everyone else are being fleeced by a local government sector more focused on vanity projects and bureaucratic bloat than getting the basics right.”

“The pressure is building. More than 15,000 Kiwis have already signed the Taxpayers' Union's petition to cap rates at inflation, and now Federated Farmers have joined the call.”

“Ratepayers are saying no to year after year of double-digit rates hikes. Minister Watts needs to act, put a lid on rates bills, and knock some common sense back into local government."

The Taxpayers’ Union’s Cap Rates Now petition is available at CapRatesNow.nz

In order to protect local business, commercial rates must be cut, the Taxpayers’ Union says in response to new reports that Wellington businesses are being hit with rates nearly twice as high as other cities.

“Wellington’s rating system is anti-growth, anti-business, and out of step with the rest of the country,” says spokesperson Tory Relf. “A small business here pays almost double what Aucklanders do. It’s a disgrace. ”

“The Council charges businesses nearly four times the rate of residents. This extraordinary differential is a deliberate attempt to mask how high the overall rates burden has become in order to cover wasteful Council spending.”

“This isn’t fairness, it’s daylight robbery. Other cities support business while Wellington bleeds it dry and the result is empty shops, lost jobs, and a dying city centre.”

Officials advised lowering the rate differential last year yet Councillors refused.

“Even their own staff warned them. But they doubled down on failure,” Relf said.

“Anyone who walks around the city centre can see the effect this is having. If the Council wants to revive Wellington, it must stop treating businesses like the enemy. Cut the rates now, before it’s too late.”

Tauranga City Council has confirmed a 9.9 percent rates increase. Council has cited savings found that has led to a lower rise than the 12 percent proposed, and the 20 percent originally projected.

“9.9 percent is not a victory—and councillors should not be patting themselves on the back for a rates increase only slightly less extreme than 12 percent.” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“On top of last year’s 13.1 percent increase, it’s a cumulative rates rise of more than 24 percent in just two years. That’s simply not affordable.”

“Have we lost sight of what a ‘normal’ rates increase might be that this is somehow palatable?”

“It’s good to reduce the rise, but much more work needs to be done. Mayor Drysdale claims he has found ‘savings’—but there is not shortage of opportunities to go further, starting with the $125 million lease for Councils’ new offices, or $450,000 coffee machines rentals.”

The Taxpayers’ Union is congratulating Whanganui District Council for delivering what may be the lowest rates increase in the country — just 2.2 percent for 2025/26 — at a time when most councils are hitting ratepayers with double-digit hikes.

“This is what responsible local government looks like,” says Taxpayers’ Union spokesperson Tory Relf.

“While other councils cry poor, Whanganui is showing leadership — sticking to the basics, tightening its belt, and putting ratepayers first.”

“Whanganui has proved it’s possible to balance the books without hammering households. Other councils should take note.”

Responding to Hamilton City Council's proposed increase of 25.5% for the 2024/25 financial year, and subsequent 14.1% rate hikes for the following four years, Taxpayers’ Union Head of Campaigns, Callum Purves, said:

“While Hamilton City Council might be trying hard to sell the idea that there is no other choice when it comes to funding its water infrastructure, it’s evident that the financial crisis it now finds itself in has been driven by years of wasteful spending.

“Just last year, our 2023 Ratepayers Report revealed the Council had spent over $315m on contractors and consultants – more than three times that of Auckland Council – and pays nearly a quarter of its staff salaries over $100,000. It’s that there is still plenty of fat the Council could trim to allow investment in vital infrastructure while protecting ratepayers from eye-watering rate hikes.

“Double-digit rate hikes have become a worrying trend across New Zealand’s local councils and now you’d be hard-pressed to find any council with a rate increase below the level of inflation. It’s high time our local authorities start cutting back on the nice-to-haves and stop expecting ratepayers to keep bailing them out."

The Taxpayers’ Union is slamming Selwyn District Council for proposing a 16% rate hike in the first stage of a cumulative 45.89% rates hike over three years.

“Yet again we are seeing a council completely fail to be prudent with its spending proposals, and is now asking its already-burdened ratepayers for an extra arm and a leg to bail them out,” Taxpayers’ Union Campaigns Manager, Connor Molloy, says.

“From a council that just last year was able to keep its rates increase under the level of inflation to now looking at dropping double-digit rate hikes for the next three successive years is an unacceptable turn of events that has blind-sided Selwyn’s ratepayers.

“The council should be tightening their belt like households all across the district are forced to do when costs rise. This includes trimming the fat in the Council’s back office bureaucracy, letting go of gold-plated vanity projects and seriously considering the sale of under-utilised or unnecessary assets.”

Despite the national health and financial emergency, most councils are still planning to hike rates - some up to nine or ten percent. Louis interviews Hutt City Councillor Chris Milne & Christchurch City Councillor Sam MacDonald on their response to our campaign calling for a nationwide rates freeze and ways councils can save money.

You can support our campaign calling for a naitonwide rates freeze at www.ratesfreeze.nz. The dashboard referred to in the podcast is available at www.taxpayers.org.nz/rates_dashboard

You can subscribe to Taxpayer Talk via Apple Podcasts, Spotify, Google Podcasts and all good podcast apps.