There's an expectation a rates cap will prove challenging and require teaming up with central Government.  

The Government's proposing to stop rates increases at 4% a year, excluding water and other non-rates revenue. 

Councils wanting to go beyond this will need approval from a government-appointed regulator. 

Nelson Mayor Nick Smith told Mike Hosking he's not surprised councils have been targeted by the Government as it aims to reduce costs across the board. 

But he says delivery will require the Government to work with them to get costs down, especially in the construction sector. 

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