Rates capping proposal
The Government is implementing a rates cap—expected to be between 2% and 4% per capita, per year—to keep down local council rate increases. The transition begins January 2027 with the full regulatory cap will be enforced by 2029. This policy requires councils to prioritise core services over ratepayer-funded hikes.
The aim is to manage inflation in council rates and relieve cost-of-living pressures on households.
Environment Southland supports the intent to reduce the rates burden on households and improve clarity and transparency. How there is a serious concern about how it could affect essential services, such as maintaining and improving our flood infrastructure and being able to act swiftly to biosecurity incursions, which often present an economic threat.
Water charges and water-targeted rates are excluded from the proposal and the regional council sector wants to see river management excluded, too.
