Responding to the Prime Minister’s pre-Budget speech, Taxpayers’ Union spokesperson Tory Relf said:

“Christopher Luxon is talking about fiscal responsibility while announcing nearly $3,780 per household in additional government spending.”

“A $2.1 billion operating package is not restraint - it is still $2.1 billion more spending. And increasing the capital package to $5.7 billion, when December’s Budget Policy Statement had it at $3.5 billion, is a $1,065-per-household blowout before Budget Day has even arrived.”

“If the Government is serious about getting debt down and returning to surplus, this should be a ‘zero Budget’ with no new net spending, like John Key’s 2011 Budget. Every dollar of new spending should be matched by a dollar of savings.”

Moody’s has placed New Zealand’s credit rating on a negative outlook, underscoring growing concern about the Government’s worsening fiscal position.

Responding, Taxpayers’ Union spokesperson Tory Relf said:

“Minister Willis is right to say this is another warning that New Zealand can’t afford to simply spend more and borrow more. The problem is that is exactly what she is still doing.”

“Minister Willis got her first warning on 21 March this year when Fitch moved New Zealand to a negative outlook. Since then, government debt has grown by almost $2 billion and the National Debt Clock is forecast to hit $300 billion before the election. Where is the fiscal discipline Minister Willis talks about?

“Blaming global uncertainty is a convenient distraction for Minister Willis. Moody’s is pointing at Wellington. Despite the rhetoric, Government spending remains higher than under Grant Robertson, borrowing continues to climb, and there is no sign of a surplus this decade.”

“Credit rating agencies do not act on vibes. They follow the numbers. Being placed on negative watch is a signal to investors that New Zealand is becoming a riskier place to lend to, which ultimately means higher interest costs for taxpayers.”

“Clinging to the AAA rating while being put on negative watch is like celebrating while the warning lights are flashing. If this is what fiscal discipline looks like, it is no wonder Moody’s is losing confidence.”

“This must be a wake-up call ahead of Budget 2026. Until the Government matches its rhetoric with real spending restraint, more warnings, and eventually a downgrade, are inevitable.”

Responding to reports the Government is considering additional financial support for families during the fuel crisis, the Taxpayers’ Union says any new support for families must be fully funded through spending cuts elsewhere, not more borrowing.

Taxpayers’ Union spokesperson Tory Relf said:

“Families are under real pressure from rising fuel costs, but throwing borrowed money at the problem will only make the cost-of-living crisis worse. More deficit spending risks driving inflation higher and keeping interest rates elevated.”

“If ministers want to provide support during the fuel crisis, it must be fully funded by reprioritising the billions currently being wasted across the public sector.”

“New Zealand cannot afford another Grant Robertson-style ‘spend now, worry later’ response. Kiwis are still dealing with the consequences of that approach.”

“Government debt is already at $140,000 per household, according to the national Debt Clock. Helping families today shouldn’t mean saddling them with more debt tomorrow. The Government should be tightening its belt and reallocating spending, not reaching for the credit card again.”

Responding to today’s reporting that Minister Willis expects the current rise in inflation to be "a blip", Taxpayers’ Union spokesperson Tory Relf said:

“Minister Willis is sounding a lot like former US Treasury Secretary Janet Yellen, who dismissed rising inflation under the Biden administration and got it completely wrong. Minister Willis’ claim that the increase is mainly due to international factors downplays the domestic pressures her Government can actually influence.”

“As Kiwibank recently noted, it is the heat in domestic inflation that is most disappointing. High electricity prices driven by a cosy power sector oligopoly, and grossly excessive local government rate rises are major contributors. The Government knows this, but its responses have been ineffective or delayed.”

“The Government’s excessive spending is also adding fuel to the fire. Continuous borrowing is building a mounting debt pile, with Total Crown borrowing now nearly $2 billion a month. Financial markets are already signalling expectations that the Reserve Bank may need to bring forward interest rate hikes later this year. Mortgage rates have already started rising on that basis, and economist Brad Olsen has speculated the Reserve Bank could even lift rates as soon as May.”

“Budget 2026 is Minister Willis’ last real chance to show spending restraint. Continued failure to rein in government spending will cement a record of fiscal ill-discipline. Claims of a surplus at the end of every forecast period will keep losing credibility, and international credit ratings agencies will take notice.”

The Taxpayers' Union is calling on Nicola Willis to publicly explain why she has continued Labour's trajectory of increased government spending despite the $3 billion of proposed savings from her Associate Minister of Finance, David Seymour, as revealed by Stuff today.

Nicola Willis tasked David Seymour to find savings, to get what Willis called Grant Robertson's 'addiction to spending' under control. According to Stuff, Seymour delivered the goods: some $3 billion of savings and efficiencies.

Responding to the report, Taxpayers' Union Executive Director Jordan Williams, said:

"Instead of following through on National's promises to get spending under control, Nicola Willis broke her word. Less than four percent of the identified savings were actioned, and even those were simply reallocated to increased spending elsewhere."

"Overall Nicola Willis is spending more now than when Grant Robertson left office. Now, some six months after the Budget, we learn that David Seymour gave her the answers, but she threw them in the dustbin."

“The biggest economic anchor right now isn't Donald Trump or trade barriers, it's Nicola Willis and the burden of super-sized government spending."

“The Treasury is sounding the alarm about current policy settings being unsustainable. Seymour should be congratulated for being a Minister coming up with answers."

“The public’s sinking opinion of the Government reflects growing disillusionment with its financial and economic management. The only short-term options open to the Government are to significantly reduce Government expenditure in Budget 2026 and lend some credibility to its forecasts of a surplus and ability to turn the ship of state around.”

"If Willis couldn't stomach Seymour's fiscal lunch, her job was to find alternative savings. Instead she's fudged her promise to taxpayers to get spending under control."