Rates capping could hit council credit ratings, Treasury warns rates are 'significantly below' sustainable levels

Local Government Minister Simon Watts wants to take a rates capping policy to Cabinet. (Image: NZME)

Thu, 11 Sep 2025

Capping rates could impact council credit ratings, Treasury says, and Government policies should instead focus on allowing rates to rise to more sustainable levels.Local Government Minister Simon Watts has promised to take a rates capping policy to Cabinet before Christmas.In response to questions from BusinessDesk, Watts said the Government was exploring the option to control what he described as unsustainable rates increases.“We are acutely aware that the historical underinvestment in infrastructure has and will lead to rates rises,&rdq...

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