At its 28 January workshop, HBRC staff confirmed that the rate increase for 2026/27 would be 5.2% instead of the 8.5% increase projected in the Council’s current long-term plan (LTP). That’s a 39% reduction!

In explaining that fresh public consultation on such a significant change would not be required, the staff stressed that the reductions would not require reducing service levels, which if required would trigger consultation requirements.

This would appear to be a ‘damned if you do, damned if you don’t’ situation for Councillors.

On the one hand, a 39% reduction in the expected rates for the coming year should count as a major PR victory … heaps of applause to Councillors.

On the other hand, finding ways to achieve such a reduction without reducing services rendered suggests there was a very significant amount of fat sitting in the Council’s budget … and only just now discovered.

Or, a third option … HBRC is about to impose slave labour conditions on its staff and demand the impossible.

No details were provided on the savings … I’m told “mainly operational”. Thus, the rate reduction could also be helped by factors like lower interest costs and a bigger return on Port and other investments.

We look forward to seeing the details.

That will shed some light on whether — given this impressive 39% HBRC benchmark — we should expect similar levels of rate reduction from our other newly elected HB councils.

Stay tuned!