The Government’s nationwide rates cap announcement has prompted a wide range of reactions across Canterbury, from strong support to serious concern.

On Monday the Government announced plans to introduce a rates cap that would limit annual increases to a maximum of 4 percent, based on long term economic growth trends over the past 35 years, with a minimum increase of 2 percent reflecting the midpoint of the Reserve Bank’s inflation target.

Burwood councillor Kelly Barber said the move reflects what residents have been telling him for years.

“The one thing residents have consistently told me is that constant rate rises are unsustainable and I think the Government’s announcement today will help sharpen our focus on finding ways to ease the financial pressure on households.

“I imagine over the next few years we might need to make some tough choices to keep rates rises below any cap set but when you think about it, every household, business and individual in our city makes those types of decisions for themselves every day. Why should we be any different”

Riccarton councillor Tyla Harrison Hunt warned that a simple cap ignores the real cost pressures facing councils.

“Many compare a rates cap to CPI or GDP, but councils live in the construction world. Construction costs, not supermarket prices. Construction costs have surged well above both CPI and GDP for years.

“Layer on extra government requirements, water regulation changes, compliance costs, GST on rates, and the fact the Crown does not pay rates on large blocks of barren land, and the gap gets even wider. A cap that ignores those pressures is not realistic. The Government will force many councils to borrow just to maintain their infrastructure. Our next gen suffer in the end.”

“I would be open to seeing how the Government can help ease the burden by providing opportunities for investment, alleviating some GST on rates, and maybe paying rates on huge amounts of rundown premium land. Then I would be keen to look at a cap, because we might just be able to repair the kilometres worth of a century old infrastructure.”

Halswell councillor Andrei Moore said “I generally welcome this news and think the timeline is reasonable and realistic as long as Central Government do not continue adding more costs onto councils.

“Our Council needs to respond with a thorough line by line review of operational expenditure and ensure our new Chief Executive has a solid track record of identifying and delivering efficiencies.

“Central Government needs to give councils their GST back on development contributions to help fund growth related infrastructure and should also start paying rates on their properties like everyone else has to.”

On behalf of the Regional Government Partnership, Canterbury Regional Council Chair Dr Deon Swiggs said the cap cannot be viewed in isolation.

“The rates capping announcement needs to be understood alongside the challenges and changes proposed for local government, including the new resource management legislation due in coming weeks.

“We absolutely share the Government’s concern about affordability for communities. No council wants to increase rates, and we work to balance essential service delivery with keeping costs down while meeting our legal obligations for environmental protection and climate adaptation.

“The proposed 2 to 4 per cent band provides some flexibility, but rates capping raises fundamental questions. How do we fund infrastructure renewal How do we build climate resilience How do we respond rapidly to extreme weather events when our funding is constrained.

“The work of regional councils goes beyond processing consents. We are responsible for natural resource management, public transport, biosecurity, flood and river protection, harbours, and environmental monitoring. All of these services directly underpin New Zealand’s productive economy and community wellbeing.”

Fendalton Councillor David Cartwright said the announcement aligns with concerns raised by residents.

“In short, this is a positive step towards reigning in what many have suggested as uncontrolled council spending at a time of financial hardship. As a new councillor, I am confident that our Council is ready for the conversations around spending priorities, the services we deliver and the community expectations.

“We must also look at new income opportunities and increasing efficiency across all areas within Council units. Christchurch is the best little city, we have so much to be positive about.

“We need time to work through the detail to ensure that local government is empowered to support thriving communities, economies, and environments for future generations.”

Harewood councillor Aaron Keown said residents in his ward have been calling for tighter financial discipline.

“Rates capping will be welcomed in Harewood. For too long I have heard from residents that the council needs to cut its cloth. Councils have a lot of options for reigning in their costs and I look forward to reducing the rates burden for the residents of Christchurch. This is welcome news that cannot happen soon enough.”

Waimairi councillor Sam MacDonald called the cap a major step in addressing cost of living pressures.

“This is a significant step forward for reigning in the cost of living crisis, our Council is up for the challenge and already has a programme of work underway and a briefing on Thursday regarding cost saving measures. We will need to have an honest conversation with the community regarding what services we deliver, strategically how we might lift external income and what we can do to reduce rate increases.”

 Christchurch City Council Chief Executive Mary Richardson said “the City Council takes a highly prudent approach to expenditure and carefully weighs the impact on ratepayers.

Long‑term planning and financial discipline are central to our decision‑making and we will work to ensure rates remain fair and sustainable without waiting for new regulatory models.”