Rates in Upper Hutt: The impact and what I believe should be done.

Hellen_Swales
Jul 25, 2025
4 min read

Upper Hutt, 24^th July 2025

One of the biggest concerns I hear from our community is the rising cost of living—and at the heart of that, for many, is council rates.

Upper Hutt residents have just faced two rates increases in the 2024-2034 Long Term Plan 19.94% and then a 15.78% increase in rates, the highest in over a decade.

Key points:

Taking a more measured approach in past years would have helped spread the financial impact gradually, avoiding the sharp increases we are now facing.
Anyone struggling to pay their rates should get in touch with the council. (Rates Department)
I have been working closely with the community with regards to the rates rebate and will continue to do so.

2022 – 2023 Annual Plan

At the council Meeting adopting the annual plan for 2022 – 2023 there were 4 councillors who voted against accepting the 5.83% increase on rates, Cr. Carson, Lambert, McLeod and Hellen Swales (me), as we knew this was not putting council in a better financial position going forward.

However, Mayor Guppy, Cr Bentley, Griffiths, Newell, Ultra, Taylor, and Wheeler who some had campaigned on “Low Rates" stayed true to their campaign and voted for keeping rates low. This was just creating an issue further down the line.

Link to the UHCC 2022/2023 Annual Plan Minutes

2023 – 2024 Annual Plan

At the Council meeting held on the 28^th of June 2023 when discussing the adoption of the annual Plan for 2023 – 2024 we revisited our plans and budgets for that year. This is where we had planned for a net rates increase of 5.81% (effectively keeping it below inflation) and keeping to under the 6% promised by Mayor Guppy. The rational, for the current Mayor Guppy and Cr’s Holderness, Carey, Carson, Hammond, Wheeler, Newell, Ultra, Griffiths’, was, keeping the needs of the community in front of mind, and staying in line with the limit committed to in the Long-Term Plan.

But by keeping the rates at 5.81% with the council facing substantial operating costs increases, the true rates increase should have been around 20% for that year 2023-2024. However, the proposal from the officers was to apply $7.8 million from our reserves fund to help reduce the overall burden on the rate payers was accepted.

Link to the UHCC 2023/2024 Annual Plan Minutes

However:

The Consumer Price Index (CPI) running at 7.23%
The forecasted interest cost for the council on its debt had increased that year 2023-2024 to 26% = $1.382m,
Bulk water had increased $1.169m higher than what was budgeted at $9,880m
Insurance on council assets had increased by an estimated 36% year on year 2023 – 2024.

So, in summary, the net effect was that in June 2023 a 20% rate increase for the 2023 – 24 annual plan was necessary to fund the council activities This was 14.1% higher than the 5.81% forecast for that year in the Long-Term Plan. However, the Mayor and most Councilor's wanted to keep the rates for 2023 – 2024 at 5.81% and voted accordingly. Their view was that the community, like the rest of New Zealand, was/is feeling the immediate pressure of the high cost of living, high rates increase would not be tolerable or prudent in their view. But this decision while viewed as being community minded, it was just creating a bigger issue down the line.

This is why Cr. Dylan Bentley, and I could not support the adoption of the 2023 – 2024 annual plan, as it kept the rates below where they needed to be to sustain our infrastructure. We both believed that on top of rising inflation, construction costs, and central government reforms like Local Water Done Well, these would put increasing financial pressure on the council.

I canvassed other elected members that we should consult with the community on such rates increases that, at the very least, to keep pace with inflation at the time. The mayor, and some council members and council officers were not supportive of such consultation.

Taking a more measured approach would have

helped spread the financial impact gradually,

avoiding the sharp increases we’re now facing.

It’s crucial that those elected to represent our community around the council table understand the realities of governing a multi-million-dollar organisation. Every “decision made” has real consequences for the ratepayers they serve, and many do not have the financial acumen to see direct and unintended consequences.

Democracy, in the end, is a numbers game—but leadership requires more than just counting votes. It requires foresight, responsibility, and a genuine commitment to the long-term wellbeing of our city.

What Needs to Change?

A Rates Review.

I’ve been calling for a complete rate review since we adopted the 2024 – 2034 Long Term Plan that became effect on the 1st of July 2024 This would review how we structure and apply rates in Upper Hutt. Our council currently use a capital value-based rating system. A rates review would consider whether this remains the most equitable model or whether another approach (e.g. land value or uniform annual general charges) would better reflect the community’s needs.

There is a commitment that council will undertake a rates review in 2026.

Key questions:

Should we continue rating on capital value?
Is the balance between fixed charges and variable charges fair?
Are commercial and residential ratepayers contributing appropriately?

Reassessing Differential Rating

A review may explore differentials—where different types of properties (e.g. rural, commercial, residential) are charged at different rates based on their use.

Key questions may include:

Should rural properties be rated differently due to fewer council services?
Is the business sector contributing a fair share?

Community and Stakeholder Engagement

A full consultation out of such a rates review is an absolute necessity for 2026 to answer these and other questions the community may have.

Council would need to engage with:

Residents
Community organisations
Businesses
Mana whenua

Workshops, surveys, public meetings (e.g. hui), and submissions would ensure the community has a say in shaping any changes. Then different scenarios would be modelled. We must improve awareness of, and access to the Rates Rebate Scheme and explore local relief measures for those struggling the most. I have been working closely with the community with regards to the rates rebate and will continue to do so.

Link to DIA Rates Rebate Form

In Summary

We need leadership that understands both the finances and helping the community to understand them. I believe in responsible financial management—but not at the expense of fairness or community wellbeing. If elected Mayor, I will work hard to bring balance back to how rates are managed in Upper Hutt.

Let’s make our city affordable, sustainable,

and fair for everyone.

Authorised by Hellen Swales: hellenformayor@gmail.com