55794 (2025). Tangi Utikere to the Minister of Local Government

55794 (2025). Tangi Utikere to the Minister of Local Government: How will the Government ensure that the lower bound of the target range is sufficient to cover councils’ cost pressures relating to essential services, and will councils be required to demonstrate that rates increases below the minimum would not compromise essential service delivery?

Hon Simon Watts: Preliminary analysis suggests a lower bound of two percent, which aligns with the Reserve Bank’s midpoint inflation target, reflects the assessed minimum necessary revenue needed for councils to maintain existing services and assets. The formula for setting the range is still under policy development and is the subject of targeted consultation until February 2026. We believe the lower bound of the target is necessary to ensure councils maintain existing services and assets.