Labour has released its long-awaited fiscal plan, saying every promise it has made is "fully costed and paid for", despite not providing a cost for fully re-implementing the pay-equity legislation.

It does, however, promise an immediate pay rise to 65,000 care and support workers, costing $2.5 billion over four years, and Labour leader Chris Hipkins said on Sunday there was "plenty of headroom" within the plan to pay for pay equity overall.

Finance spokesperson Barbara Edmonds said Labour would keep operating allowances at the $2.4 billion set by the coalition government in Budget 2026.

The party said it would not rely on a larger operating allowance, stating new investment "must fit within these allowances, alongside cost pressures and other priorities".

"Our announced capital commitments fit comfortably within the $12 billion of future capital allowances.

"We also have almost $10.5 billion of future operating allowances unallocated. We can deliver what we have promised without increasing those allowances."

Edmonds said Labour would return the books to surplus in 2028/29 and bring net debt down below 20 percent of GDP "over time", maintaining it would use the OBEGAL measure, rather than the government's preferred OBEGALx measure.

"We can do that, because we have made better choices about where public money goes and will make every dollar work harder."

Labour’s announced capital commitments:

  • $200 million capital injection for the New Zealand Future Fund
  • $420 million for the initial student loan write-off
  • $200 million for hospitals
  • $400 million for schools
  • $2.9 billion for Kāinga Ora housing, spread over four years
  • $7 million for Ratepayer Assistance Scheme solar expenditure

Labour also reconfirmed its plan to restore Pay Equity legislation in its first 100 days.

Hipkins said National promised to grow the economy and get the books in order: "it has done neither."

"171,000 New Zealanders are unemployed, growth is weaker and debt has continued to rise. They have cut jobs and services, and New Zealanders have been left to pay the price."

Hipkins said the choice was clear: "More cuts and decline under National, or a Labour Government that will balance the books without shrinking the economy, get costs under control and back the people and businesses doing the work."

Edmonds reiterated that every election commitment Labour had made was fully costed and fully funded.

"The numbers add up and we have left room to confidently respond to whatever comes next.”