Mayor responds to rates cap proposal
Published on 01 December 2025
The government has announced its intention to introduce a rates cap and has begun consultation with stakeholders. This consultation runs through to February 2026, with further opportunities for engagement expected through the legislative process later next year.
Mayor Andrew Tripe says, “The government’s proposal comes at a time when Whanganui is well positioned to respond, due to disciplined financial management and a focus on affordability, but also at a time when local government is facing an unprecedented wave of reform.
“At this early stage, we will need to see more detail about how the proposed system would operate before we can fully understand its implications for Whanganui. When we prepare our next long-term plan, we will be able to assess the full impact of this policy on our finances, our services, and our community.”
He says the government’s move toward a rates cap has been well signalled. “I welcome greater fiscal discipline across the sector and Whanganui has demonstrated this in recent years. It is important we continue to provide household and business budgets with greater certainty and affordability.
“At the same time, let’s not lose sight of the wider picture: electricity and insurance have both increased by more than 10 percent in the last year, and central government tax revenue has grown by over six percent.
“Local government has become the focus of public pressure and I’m willing to own our part in that,” says the mayor, “but it’s important the public understands the full cost landscape.
“A clear and fair framework that guides rates growth can help councils remain focused on the essentials: roads, water, rubbish, and core services.”
He says, “Whanganui has already demonstrated strong fiscal leadership. We delivered the lowest average rates rise in New Zealand this year at just 2.2 percent. That reflects our disciplined spending and our commitment to ensuring every ratepayer dollar counts.
“Any national cap must still allow councils to invest in essential long-term infrastructure. More than 90 percent of our capital investment in the current long-term plan is in infrastructure and I am keen to see that type of investment continue. We are focused on the basics, but the basics are increasingly expensive to deliver.”
Mayor Andrew says a strict rates cap also creates risk. “If the costs of delivering essential services continue to rise faster than a capped rate increase, councils will face difficult decisions.”
The cost of resealing a kilometre of road more than doubled between 2017 and 2023. “For the same money, we can now resurface less than half the distance we could five years ago. Civil construction costs have climbed sharply. Gas prices increased by around 90% last year alone, and electricity costs are predicted to rise substantially when our contract expires in 2026.
He says rates make up a small proportion of the total taxes property owners pay, but they are essential for maintaining the infrastructure that keeps communities functioning. “If the council is unable to increase rates to meet rising costs, other options may need to be considered.
“If a cap does not keep pace with the rising cost of delivering essential services, councils may need to look at alternatives, including changes to service levels and increases to user fees. These are difficult conversations, and we will work hard to avoid having to have them, but it's important the public understands the implications of a strict cap.”