Talking rates
Some relief for Christchurch businesses as Council softens rates increases.
Christchurch businesses are set to face smaller council rates increases than originally forecast, following refinements in the Christchurch City Council’s Annual Plan that aim to ease pressure on the local economy.
Following public consultation and shifts in economic conditions, the adopted plan confirms an overall average rates increase of 6.60%, down from the 7.58% proposed in the Draft Annual Plan.
Christchurch Mayor Phil Mauger said the council was working to balance rising costs with the community’s desire to keep rates manageable. “The community expressed a clear desire for the Council to maintain service levels while keeping rates manageable – a difficult but necessary balance,” he says.
On key cost drivers, the mayor highlighted broader economic pressures. “Across New Zealand, both organisations and households are grappling with challenging economic conditions and rising living costs, and our Council is not immune to these pressures. We are contending with increased costs beyond our control alongside reductions in external funding,” says Mayor Phil.
“As a result, the Council has had to make prudent decisions to keep rates affordable and borrowing sustainable.”
The Annual Plan allocates funding for both everyday services and major projects, with operational spending of $871 million and capital spending of $648 million, including approximately $95.5 million for the stadium project.
Mayor Phil also pointed out that the overall increase was lower than projected in the Long Term Plan, and noted the contribution required for the new One New Zealand Stadium at Te Kaha.
“Of that, 1.75% is going towards One New Zealand Stadium… if you take that out of the equation, the overall increase is below 5%,” he said.
“With local economic growth outpacing national trends, the opening of new facilities, and ongoing progress in enhancing our city’s appeal, Christchurch is solidifying its reputation as an excellent place to live, work, and invest.”
Notable items in this Annual Plan include:
- Operational spending of $871 million on the day-to-day services the Council provides. This is $9.7 million higher than proposed in the Draft Annual Plan, driven by changes in the wider economy and policy decisions made by the Government.
- Capital spending of $648 million in 2025/26, including about $95.5 million for One New Zealand Stadium at Te Kaha. This is $88.2 million lower than what was proposed, due mostly to rephasing $71.5 million to later years based on realistic delivery.
- An overall average rates increase of 6.60% – lower than the 7.58% proposed in the Draft Annual Plan. This translates to a 6.49% increase for the average household (or $4.96 a week), 7.0% for business properties, and 6.49% for rural properties.
- Pausing the collection for the Christ Church Cathedral reinstatement.
- Increasing the rates charged for infrastructure renewals in 2025/26 by $2 million, which will reduce the amount needed to borrow to fund the capital programme.
- Granting $5 million in 2026/27 to the Air Force Museum of New Zealand for its planned extension.
- Allocating money for a scoping study for a central city shuttle service.
- The disposal of a small amount of Council-owned land now surplus to requirements.
- Confirmation of the Council’s new Climate Resilience Fund, to be used for climate adaptation requirements for Council-owned assets identified in the city’s Adaptation Plans.
