Changes to local government appear to be on the way, with Prime Minister John Key confirming Cabinet will be looking at the issue.

Speaking at a post-Cabinet press conference this afternoon, Mr Key said there would be proposed changes about how local bodies operated, and the Government would be speaking to the sector.

Local Government Minister Nick Smith had raised concerns specifically about the compound nature of rate rises over the seven or eight years, and Mr Key said the Government wanted to ensure things were running as efficiently as possible.

Mr Key would not specify what changes were on the cards, saying the proposals were yet to be finalised.


However, asked whether there might be further amalgamations of councils, Mr Key indicated it could be up for consideration.

"We won't force amalgamation, but we do think amalgamation in Auckland has been successful."