Sarah McMillan/cvnznews.com
Labour has launched a fresh economic pitch for Election 2026, promising to grow the economy, return the books to surplus, and ensure “hard‑working New Zealanders can get ahead” without cutting public services.
Leader Chris Hipkins says the party’s plan is built around backing people, backing businesses, and restoring stability after what he describes as “three difficult years for Kiwi households”.
Hipkins argues National has failed to deliver on its promise to fix the economy, pointing to rising unemployment, business liquidations, and increasing living costs. “New Zealand should be a country where hard work gets you somewhere,” Hipkins said. “Instead, unemployment is up, businesses are struggling and everything costs more.”
Labour’s plan centres on fiscal discipline paired with targeted investment. The party says it will return to surplus by 2029/30 using the original OBEGAL measure, reduce net debt to 20% of GDP over time, and maintain government spending and revenue at around 33% of GDP once its proposed capital gains tax is fully implemented.
Hipkins says Labour will not pursue cuts to core services, arguing “you can’t cut your way to growth”. Instead, the party promises investment in hospitals, schools, infrastructure, skills, and job‑creating businesses — areas it says are essential to long‑term economic strength.
The package includes several structural changes: restoring the Reserve Bank’s dual mandate to consider both price stability and employment, reintroducing wellbeing reporting, and establishing an independent Parliamentary Budget Office to scrutinise government spending and election promises.
Labour finance spokesperson Barbara Edmonds says the plan is about responsibility and realism. “Labour will be responsible with taxpayers’ money, balancing the books and bringing down debt, while giving New Zealand the capacity to invest in its future,” she said.
Edmonds also took aim at National’s record, citing an 11‑year high in unemployment, a 71% rise in business liquidations, record homelessness, and surging KiwiSaver hardship withdrawals. “That isn’t economic success,” she said. “Strong public services are an investment in New Zealand’s future.”
Labour says its approach will “leave the country stronger for the next generation” while giving businesses and families confidence that economic recovery won’t come at the cost of essential services.
