By the end of this decade, the New Zealand Government, whoever leads it, will have both raised taxes and cut the welfare state. Over the 20 years before 2008, neither main party offered handouts or tax cuts unless the money was already in the bank. Borrowing for handouts or tax cuts was assumed to be a sure election loser. After Covid, the initially prudent Grant Robertson became even worse than English, and Nicola Willis’ numbers are little better. Whatever Luxon and Hipkins promise you in terms of spending increases or tax cuts should be ignored.

Source: New Zealand Herald January 22, 2026 19:02 UTC