What you are saying about the Government’s proposed rates cap

Tuesday, 2 December 2025

Critics warn it could mean fees for libraries and other essentials, while the Government says councils need to “get back to basics”.

The Government is proposing to introduce a rates cap for local councils, which it’s accused of spending on nice to haves rather than must haves.

As well as a cap, which would be based off GDP, it’s also proposing a rates floor - what councils must raise in order to fund infrastructure, based off inflation.

Councils must obtain permission from a regulator appointed by central government if they want to raise rates beyond what is expected to be a 2-4% cap.

The policy would be transitioned in from 2027 and expected to be in place in 2029.

Labour says the policy will force councils to charge for, or forgo basics like library services, water, waste and footpaths.

Here is what Post readers have said so far:

“Finally..about time…At current increases my pension won't in five years cover rates and insurance. Sick of waste and looking after those who simply want a great city but do not contribute. Middle Christchurch ( the ones who say nothing are being crushed by idiotic spending) should be celebrating.”

“The drivers of the recent hikes have been inflation in insurance and infrastructure costs, compounded by a drive to catch up on historic under investment. Rates caps sound very appealing but they could easily make a very bad situation much worse.”

“Save lots by converting more roads into cycleways. Far cheaper to maintain and better for our health. We also need to reduce local government staffing numbers and get rid of the very high salaries.”

“The government wants to place a rates cap, while demanding councils do more and more with less money. Let councils make decisions for their communities. Big brother stuff, while government wastes money on new unnecessary ministries and lower taxes for tobacco companies and landlords.”

“A case of do as you are told, immediate issue that Local Water Done Well, costs are not capped… how is [council] debt going to be paid off, if not through rates?”

“Can someone tell Phil Mauger and Aaron Keown so they stop proposing tidal barriers and monorails?”

“As well as the welcomed pressure on 'nice to haves' (events express; tidal barriers) council also needs to look at reducing expenditure e.g. staff costs.”

“In that case it's about time the government started paying rates rather than bludging off the current ratepayers.”

“About time, well overdue. We can only have the city we can afford, not the city we want. Time to be happy with less.”

“The people who say [time to be happy with less] are the first to complain about potholes, and the park being overgrown, and the recycling not being picked up, and having to pay for their water usage.”