Which councils could meet government's proposed rates cap?
Few councils have been able to keep their rates rises below the proposed 4 percent a year cap in recent years.
Nine out of 70 councils proposed rate increases of less than 4 percent for 2026/27, with an average increase of 6.9 percent. The biggest rise was over 20 percent for Clutha District Council, followed by Waitaki District Council at 17 percent and Gore District Council at 11 percent. The smallest increase was 2.8 percent for Wairoa District Council, followed by Carterton at 3.2 percent.
Economist Shamubeel Eaqub calculated Wellington had the highest average rates bill in the country at nearly $12,000, including water entity charges and other user fees. Porirua and Queenstown-Lakes followed, while Opotiki and Invercargill had the smallest bills. Local government expert Andy Asquith doubts the rates cap plan will succeed, saying it's a short-term political move without understanding local government operations.
He argues that councils need a long-term sustainable financial system and a cross-party Royal Commission to address the issue.
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