The Opposition says this year's Budget leaves New Zealanders to fend for themselves, with more spending for prisons and more children in poverty.
Finance Minister Nicola Willis preached prudence and discipline as she revealed her Budget 2026 with no "sugar hits" for voters, instead focusing on health and infrastructure spending - and reaching surplus a year earlier than forecast.
Labour had been saying for days it was National's last chance to show it understands how tough it is for New Zealanders, and to do something about it.
Today leader Chris Hipkins said they had failed to do so.
"Nicola Willis has given New Zealanders nothing to ease the pressure they are under. Instead of helping struggling New Zealanders, Christopher Luxon and Nicola Willis chose to make lives harder," he said in the House after she delivered the Budget.
"Under National, New Zealand pays for Luxon's cuts. Cuts that don't work and will bring immediate pain and make the economy smaller."
He said the government had gone against advice in cutting jobs and services helping seniors, families and young people and raised rent, and the public service cuts would affect frontline workers and hurt regional economies.
"They've chosen cruel housing policies, which will see 80,000 households worse off, on top of earlier decisions to cut housing builds and increase the number of Kiwis living on the street."
"His cuts to the building sector have cost 20,000 construction jobs. Because of his decisions the government is cutting up to 9000 jobs across the country."
The government confirmed it plans to cut 8700 roles from the public service, with most planned for after the November election - though the savings would be realised in this year's Budget.
Edmonds said the cuts would not grow the economy, "they shrink it".
"This Budget takes no action to help with rising costs. Families are choosing between expensive food and expensive fuel, tapping into their retirement savings just to stay afloat now.
"A trip to the doctor now costs close to $100 in some parts of the country. Rates and insurance have gone up. Energy bills have skyrocketed 20 percent, contributing to a 15-year high in business liquidations."
The Green Party said the Budget was leaving New Zealanders "fending for themselves with no vision or plan for the country".
'No hope, no plan, no ambition' - Greens
Green Party co-leader and finance spokesperson Chlöe Swarbrick said the economic update was a "stark warning for hooking our economy up to more fossil fuel vulnerability".
"Every day, New Zealanders feel the reality that Luxon's government has no hope, no plan, no ambition and no vision for our country. Today's Budget is yet more proof," she said.
She said with homelessness reaching its highest level, "the government's housing strategy is clearly prison, where they're today chucking half a billion dollars to increase capacity for prisoners".
She said with 21 states of emergency this year, and the Prime Minister acknowledging they were "inflamed" by climate change, "his government continues to pour fossil fuels on the fire".
"Nicola Willis and the Prime Minister keep saying they're committed to meeting the NDC, then cut domestic action, which logically necessitates an increase in cost to pay other countries to reduce their emissions instead.
"But this government refuses to be up-front and honest about that. Treasury has been clear today that the government's inability to commit to reality means that they can't properly forecast costs."
Co-leader Marama Davidson said the people who could least afford it were those being asked to pay for the Budget, and pushed back on the claims the government was being "prudent" and "responsible".
"What do those words mean to someone who is nervously watching the supermarket bill at the checkout? What do those words mean to the mothers who are missing meals just so the rest of their kids can have kai?
"When you have an economic approach that has arbitrary targets of surplus and debt without considering the real life impacts on people, that is a failed economic approach."
The government had decided not to help bring household bills down, she said, instead spending on warships, drones and prisons.
She said the government was also failing to meet child poverty targets, with a recent child poverty report confirming it was not on track to hit targets for both 2026 and 2027.
Children living in poverty - adjusted for housing costs - was still almost 20%.
"You don't get to set targets in law, miss them year after year, and then act surprised when one in seven kids is still going without the basics," she said.
"This is a political choice. Child poverty is not a force of nature. It goes up when governments strip support away from people, and it comes down when governments trust whānau with what they need to raise their tamariki with dignity."
Ends 'years of wasteful spending' - ACT
ACT Party leader David Seymour, a coalition partner in government, said the Budget was ending "years of wasteful spending" and restoring discipline to the government's books.
Politicians had ignored the reality of having to give up one thing to pay for another for too long, he said.
"New Zealand is now forecast to return to surplus a year earlier than planned. Balancing the books in Wellington is essential to beating inflation, lowering interest rates, and easing the cost of living for families.
"Labour already made the easy choices. They grew the public service, borrowed more money, and funded policies that sounded generous while results for Kiwis got worse in education, health, and crime. Now New Zealand needs tough love and hard decisions."
ACT Ministers had contributed to $14 billion in reduced spending over the past three Budgets, "and we've led the conversation on shrinking the size of government, to make an early surplus possible".
"We've been consistent, even when it's not popular. The result is we're now delivering real change. That is the point of ACT in government."
He said New Zealand still had a problem with incomes and the cost of living, but that would not be solved by borrowing more or taxing someone else.
"It will be solved through productivity, investment, innovation, and higher-paying jobs."
This story was first published on rnz.co.nz |  |
