Local Government New Zealand is urging the Government to use Budget 2026 to deliver urgent relief for struggling ratepayers as councils across the country battle rising infrastructure costs and mounting financial pressure.
LGNZ says councils are facing growing demands to fund water upgrades, roads, housing infrastructure, climate resilience, and essential community services — costs that are increasingly being passed on to households through rising rates bills.
The organisation is calling on the Government to back new funding and financing tools aimed at reducing pressure on ratepayers, including support for the proposed Ratepayer Assistance Scheme (RAS).
The scheme would allow homeowners and developers to spread council-related costs such as rates, development contributions, and certain property upgrades over longer periods through low-interest financing.
LGNZ says the proposal could provide significant cost-of-living relief, particularly for older New Zealanders, low-income households, and communities struggling with rising council charges.
Under the proposed model, eligible ratepayers could defer or spread payments across many years rather than paying large lump sums upfront. Advocates say the system could also support housing growth and home energy upgrades such as solar installations and insulation improvements.
LGNZ President Sam Broughton says councils cannot continue carrying the burden of growing infrastructure demands without stronger support from central government.
The call comes as many councils prepare for further rates increases amid inflation, construction costs, and long-standing infrastructure deficits.
The Government has previously signalled support for exploring alternative local government financing models, with ministers acknowledging pressure on councils and ratepayers.
Debate around local government funding is expected to become a major political issue heading into Budget 2026, particularly as households continue grappling with the wider cost-of-living crisis.
For many whānau already stretched by food, housing, insurance, and power costs, further rates increases are becoming increasingly difficult to absorb.
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