Govt Publishes Council Spending Data to Boost Transparency, Weighs Rates Cap

In a move designed to enhance transparency, accountability, and financial discipline across New Zealand’s local government sector, Local Government Minister Simon Watts has released key performance metrics that detail how councils are spending ratepayer money. The newly published data reveals council-by-council breakdowns of spending, revenue, debt, staffing, and infrastructure investment—and is part of a wider government push to ensure better value and responsiveness from local authorities.

This marks the first time such comparative metrics have been made publicly available in a consolidated format, allowing ratepayers to see exactly how their council stacks up against others in terms of financial efficiency and service delivery.

Addressing the Ratepayer Squeeze

With the cost-of-living crisis placing intense pressure on households across the country, Minister Watts said the release of performance data is a crucial step toward rebuilding public confidence in local government.

“We know it’s really tough out there, and rising rates are hitting Kiwis harder than ever,” said Minister Watts. “People deserve to know how their money is being spent, and whether it’s being spent wisely. Ratepayers should have access to the facts—so they can hold their councils to account.”

Some residents have voiced frustration at year-on-year rate increases that often far outpace inflation and income growth. These hikes, in many areas, have been driven by increasing operational costs, long-term infrastructure deficits, and in some cases, expanded council roles into non-core activities.

The Government’s response is twofold: make the data public, and pursue structural reform to curb excesses.

What the Metrics Include

The newly published Local Government Performance Metrics provide a snapshot of each council’s:

• Rates revenue per household

• Debt levels and servicing costs

• Expenditure on core services (e.g., roads, water, waste)

• Staffing numbers and salaries

• Demographics and population growth

• Benchmarking data comparing councils of similar size or type

This allows for meaningful comparisons—urban councils can be compared to other urban councils, and rural districts to similar peers.

Watts described the initiative as a data-driven tool for local democracy. “When ratepayers are empowered with real information, they can ask tougher questions and demand better outcomes.”

The metrics are now publicly accessible at the Department of Internal Affairs website: www.dia.govt.nz/local-government-performance-metrics

Rates Cap Under Consideration

In addition to publishing performance data, the Government is also exploring the introduction of a rates capping system to ensure councils rein in excessive spending. Though details remain under review, the idea is to set a cap on the annual percentage increase of rates, possibly linked to inflation or population growth.

“We’re not ruling anything out. Given the cost-of-living pressures families are facing, we need to make sure councils aren’t adding more pain through uncontrolled rate hikes,” said Watts.

While some councils have already pushed back on the concept, citing unique local needs and legacy infrastructure deficits, the Government insists that any new framework will be risk-based and proportionate, and won’t hinder long-term investments in essential services.

Back to Basics: Refocusing Council Priorities

A consistent message from the Government has been the need for councils to return to their core responsibilities—roads, water, waste, and local amenities—rather than expanding into discretionary programmes that may duplicate central government efforts or stretch local resources.

“Communities expect councils to focus on what matters most—maintaining roads, fixing pipes, and making their neighbourhoods safer and more livable,” Watts said.

Councils that manage their finances efficiently and focus on essentials are being encouraged to use the metrics as a platform to highlight their achievements, while those falling short are expected to use the data as a benchmark for improvement.

A Tool for the Future

The current publication is intended as the first step in an annual reporting cycle, with data sets set to expand over time to include more in-depth performance measures, community engagement results, and service delivery benchmarks.

Watts concluded:

“This is about creating a culture of transparency, accountability, and trust. Ratepayers are shareholders in their local council. They have every right to know how their money is being used and what they’re getting in return.”