National releases fiscal plan with no tax cuts next term

The National Party has released its fiscal plan, which includes no tax cuts for the next term of government. Finance spokesperson Nicola Willis stated that while the plan shows a pathway to potential tax relief, "now is not the time to cut taxes". The party's priority is to reduce debt to ensure a buffer against future global shocks.

The plan includes $7.5 billion in operating headroom for cost pressures and new initiatives, such as education and policing. This is less than Labour's $10.4 billion in operating headroom, though Labour must fund an estimated $8.5 billion in pay equity settlements from its pot. National's plan includes $15.4 billion for additional health investment over four years, which includes medicines and bowel screening.

National's fiscal plan aims to return the government's books to a surplus in 2028/29. The plan includes approximately $1 billion in spending reductions, including $431.2 million from the foreign aid budget and $583 million from welfare. Net core Crown debt is forecast to peak at 43.9% of GDP in 2027/28 before falling to 39.5% by 2030/31.

National has pledged $1.2 million for an independent election policy costing unit at the 2029 election. Leader Christopher Luxon clarified that the party is not running on changes to superannuation, though it has a long-held desire to gradually raise the eligibility age.

How it developed

• Mon 12 Oct, 12:28pmNational is committing to an independent costings unit at the 2029 election to prevent public bickering over fiscal holes.
• Mon 12 Oct, 2:02pmChristopher Luxon clarified that the party is not running on changes to superannuation, despite a long-held desire to raise the age.

Where reports differ

• National's plan includes funding for a fourth year of health cost pressures, whereas Labour's plan currently implies a freeze in the fourth year.
• Labour's operating headroom is $10.4 billion, while National's is $7.5 billion.

Compiled from reports by NZ Herald, 1News, Otago Daily Times, Stuff and The Post.