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Home»New Zealand»Labour Says Budget 2026 “Fails Final Test” as Costs Rise and Jobs Disappear
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Labour Says Budget 2026 “Fails Final Test” as Costs Rise and Jobs Disappear

Colin Ambler/cvnznews.comBy Colin Ambler/cvnznews.comMay 28, 2026No Comments2 Mins Read
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by Colin Ambler/cvnznews.com

Labour has slammed the Government’s 2026 Budget as a failure of leadership and a missed final chance to make life better for New Zealanders, accusing Prime Minister Christopher Luxon and Finance Minister Nicola Willis of delivering “more cuts, more pain and higher costs”.

Labour finance spokesperson Barbara Edmonds said the country is going backwards under National, pointing to 40,000 more people unemployed since the Government took office and what she calls “deep and damaging cuts” across the public sector.

“Christopher Luxon and Nicola Willis promised to make life better for New Zealanders, but all they have delivered is more cuts, more pain and higher costs,” Edmonds said.

She said the Government’s decisions have already cost 20,000 construction jobs, with up to 9,000 more public sector roles now being axed — including staff who process superannuation payments, handle benefit applications and support border operations.

“It’s not just the families that feel the pain when those jobs go, it’s local economies too. Cuts don’t grow the economy, they shrink it,” she said.

Edmonds argued the Budget offers no meaningful relief for households facing rising prices. She highlighted families choosing between “expensive food and expensive fuel”, rising rates and insurance bills, and energy costs up 20 percent. Some New Zealanders, she said, are dipping into retirement savings just to stay afloat.

Labour also criticised the Government for raising rents for 84,000 social housing households by an average of $31 a week, calling it a direct hit on the most vulnerable.

“They say their choices will grow the economy, but under their watch unemployment has grown and economic growth has stalled,” Edmonds said. “Food banks are strained, and more New Zealanders are leaving the country altogether.”

She said Labour would focus on “your job, your health, your home”, promising free doctor’s visits and an investment fund for Kiwi businesses.

“This Budget was the Government’s last chance to help those doing it toughest, and they have failed,” Edmonds said. “This November, New Zealanders have a choice too.”

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Colin Ambler/cvnznews.com

Colin Ambler returned to New Zealand in 2025 after working as a journalist for Christian Media in the United Kingdom

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