New Zealand Labour says budget fails to address rising living costs

WELLINGTON - New Zealand shadow finance minister Barbara Edmonds said on Friday she backed efforts to return the government's books to surplus, but said Labour would make different choices and felt the budget was failing those struggling with rising costs.

"A track to surplus is always a priority for any finance spokesperson and for any finance minister," Edmonds, finance spokesperson for the opposition Labour Party, told Reuters in an interview. "But it's all about choices."

• Edmonds said Labour would have made different trade-offs, including reversing policies such as changes to interest deductibility and the bright-line test for property, and using revenue to provide more cost-of-living relief.

• Edmonds said the budget missed an opportunity to address New Zealand's long-running productivity problems, including access to capital, skills matching, innovation and competition policy.

• The centre-right government on Thursday delivered a stripped-back election-year budget ahead of what is shaping up to be a tightly contested election later this year, forecasting a return to operating surplus in 2029/30 just ahead of previous projections.

• She said she was worried Treasury's forecasts may be too optimistic, particularly around tax revenue and assumptions such as falling petrol prices.

(Reporting by Lucy CraymerEditing by Shri Navaratnam)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 28, 2026 at 8:02 PM.