An assurance a council rates cap will only target unnecessary costs, not community services or infrastructure. 

By 2029, councils wanting to increase rates by more than 4% will need approval from a government-appointed regulator.  

Water rates are excluded from the cap. 

Local Government Minister Simon Watts told Mike Hosking this will be an education process for councils. 

He says there's a lot of fat in the system and councils need to ensure cash has to be going into essential areas.  

Watts says he will work with the industry, not against them. 

LISTEN ABOVE