National MP Tim Costley says rates capping is not just a good thing, it is what our community wants.
Local government data shows that only about 13% of councils (9 out of nearly 70) had proposed rate increases below the planned 4% cap for the 2026/27 year. Auckland and Wellington City Mayors have spoken strongly against the 4% rates cap. However MP Costley says rates capping is about affordability.
“Rates are set by elected councillors and are paid by homeowners and tenants. Rates capping will help make life more affordable for every local family. National are passing legislation to limit the amount councils can increase rates each year to 4%. This is designed to balance the fact that some costs go up slowly over time, but also the fact that local families are not a free source of extra funding for councils.”
Costley has also come out strongly critical of his local councillors. “We cannot continue on a path of constant rate increases, taking from the pockets of hard-working families and local seniors. Any opposition from Kāpiti Coast District Council to rates capping is tone-deaf to the very clear feedback from our community.
“During the last two council terms, Kāpiti councillors increased rates by 52%, including 17% in one year – a time when the Labour candidate chaired the finance committee. Now is the time for every local candidate, and every local councillor, to come out and support rates capping.”
He says National are very clear about wanting to see a change in the spending habits of our local and regional councils.
“Every family has to make tough decisions about what they can afford, what they borrow for, and what they say ‘no’ to. We expect councils to make the same tough decisions that every local family has to make every single week. Our Government also had to make difficult but responsible spending decisions and reduced tax to help make life more affordable for local residents. If we put tax up by 17% or even 7%, there would be a similar outcry. It’s time to cut back on council spending.
“I have heard from endless local residents who are worried about being taxed out of their own homes. They have worked hard to pay off a mortgage on their home, but on a pension or fixed income, they cannot afford to keep paying higher rates for councils’ wishlist. It could cost them the ability to stay in their homes.
“We have seen local and regional councils across New Zealand waste money on pet projects. Local examples include the bus stop at Paraparaumu Station with a garden on the roof or the container pop-up in Waikanae.”
Costley says Kāpiti locals can’t afford escalating rates, nor could they afford a land tax, wealth tax, inheritance tax, or capital gains tax as proposed by Labour and opposition parties. He says Councils should focus on delivering the basics, like local roads, pipes, and public services, and keep rate increases under 4%.
Kāpiti Councillor Glen Cooper told KCNews “Some elected members have made it clear they don’t support rates capping. I do. Because without it, councils never confront the cultural shift we desperately need.”
“Rates capping isn’t a slogan — it’s a discipline, a shift in mindset. I support it because it forces us to prioritise smarter spending and more accountability to the ratepayer,” says Cr Cooper.
