Labour promises a surplus but says it won't cut to get there
The New Zealand Labour Party has unveiled a fiscal strategy promising to return the government to a surplus by 2029/30 without implementing spending cuts. The plan relies on a proposed capital gains tax to balance the budget.
Why it matters
This policy proposal outlines a distinct economic alternative to the current government's approach, highlighting a major point of contention in upcoming national elections.
<p>A capital gains tax, not spending cuts, is a key part of how Labour says it would get the government's books back in the black by 2029/30 as it lays out a set of fiscal pledges for if it were to be voted in at the election. </p> <p>The party released a fiscal strategy this morning, adopting effectively the same surplus timeline forecast in the <a href="https://www.1news.co.nz/2026/05/28/budget-2026-new-tax-changes-as-nz-to-return-to-surplus-sooner/" target="_blank">Government's Budget 2026</a> but promising a different route to it.</p> <p>Labour leader Chris Hipkins said National had failed on its own terms on the economy.</p> <p>"You can't cut your way to growth," he said.</p> <p><b></b><a href="https://www.tvnz.co.nz/player/newsclip/the-labour-party-promises-a-surplus-but-says-it-wont-cut-to-get-there" target="_blank"><b>Labour promises a surplus but says it won't cut to get there - Watch on TVNZ+</b></a></p> <p>"National came in promising to fix the economy.
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