55817 (2025). Tangi Utikere to the Minister of Local Government

55817 (2025). Tangi Utikere to the Minister of Local Government: What modelling, empirical analysis, or international comparisons, if any, did the Government rely on when concluding that a 2–4 percent per-capita annual rates-increase range is appropriate for New Zealand councils over the long term?

Hon Simon Watts: The two to four percent range is preliminary and subject to further policy development following targeted consultation that ends in February 2026. The preliminary analysis indicates that a target range of two to four percent per annum per capita provides a credible long-run guide for sustainable council revenue growth. The lower bound of two percent aligns with the Reserve Bank’s midpoint inflation target and represents the minimum necessary to maintain existing service levels and assets. The upper bound of four percent reflects long-run nominal gross domestic product (GDP) growth per capita. It is intended to accommodate for the sustainable expansion of services and infrastructure, with flexibility for faster-growing councils.