Hastings CBD business owners and landlords who fought against major rate rises say they’re “extremely disappointed” the Hastings District Council has decided to stick with its differential rating structure.
By Linda Hall, Local Democracy Reporter
The decision will result in some commercial and industrial properties in Hastings paying up to 50% more in rates than they did a year ago.
Chairman of the Hastings City Business Association, Craig Riddiford, said many of their members had fought “incredibly hard” for a different outcome.
“Hundreds of businesses engaged in the process, attending meetings, making submissions and sharing the real financial pressures they are facing,” Riddiford said.
“To see those concerns not reflected in the final differential decision is extremely disappointing.”
A council spokesperson said after considering public submissions and hearing from those who wished to speak, the council voted 10 to five to retain the current differential rating structure for the 2026/27 financial year.
Any change to the differentials would have pushed further costs onto other ratepayers such as residential property owners.
On Thursday it adopted its 2026/27 Annual Plan, confirming an average rates increase of 5.9% and retaining the current rating differentials for commercial and industrial properties, while committing to a comprehensive rating review in response to submitters’ feedback.
The differentials adopted are three times the general rate for CBD commercial real estate in Hastings and Havelock North, 2.75 times the general rate for other urban commercial, and 2.35 times the general rate for non-urban commercial and chartered clubs.
There was widespread shock and anger from the business community after they discovered they would be facing rate increases far exceeding the council’s proposed average rises of 5.9% – which includes residential rates where increases this year are on average lower.
The council attributed the increases to the district-wide property revaluation recently released by Quotable Value, which saw some parts of the Hastings district – particularly commercial and industrial properties – increase in land value.
The new valuations, received in early May, showed commercial and industrial land values had increased relative to residential land values.
Because the general rate is based on land value, this shifted a greater share of the district’s overall rates requirement onto business properties.
That impact was further amplified by the existing rating differentials, prompting the council to pause its annual plan process and include extra consultation on differential rates.
Hastings mayor Wendy Schollum thanked everyone who took the time to make a submission and share their views.
“This was a difficult decision. We heard clearly from businesses that many are under significant financial pressure, as are households,” she said.
“That’s why we put so much emphasis on reducing the forecast average rates increase of 10% down to 5.9%.”
Riddiford said while the Association welcomed the council’s commitment to review the rating system ahead of the next Long Term Plan, it offered little relief for businesses facing significant rates increases now.
In May, Bill Livingstone, who owns Hastings commercial property company Livingstone Properties with his business partner Chris Skerman, told Hawke’s Bay Today the Hastings CBD was not in great shape.
“This could just push some of those businesses over the edge,” Livingstone said.
How councillors voted
For (leave differentials as they are)
Mayor Wendy Schollum and councillors Elisha Milmine, Michael Fowler, Henare O’Keefe, Nick Ratcliffe, Callum Ross, Siiam Daniel, Kevin Watkins, Hana Montaperto-Hendry, Alwyn Corban.
Against
Councillors Derek Nowell-Usticke, Steve Gibson, Yvonne Lorkin, Simon Nixon, Heather Te Au-Skipworth.
– LDR is local body journalism co-funded by RNZ and NZ On Air.
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