'Now is not the time': Tax cuts off the table, Nicola Willis says
New Zealand's National Party has officially delayed plans for tax cuts, citing the need to prioritize debt reduction and fiscal stability. Finance spokesperson Nicola Willis stated that while a path to tax relief exists, the current economic climate requires continued spending restraint.
Why it matters
This policy shift highlights the tension between campaign promises and fiscal reality, impacting the economic outlook for New Zealand households.
<p>National has officially put new tax cuts on ice if re-elected, with Nicola Willis saying reducing debt in her fiscal plan must come first and relief would be considered when Government books are in better shape.</p> <p>The party's finance spokesperson released National's fiscal plan this afternoon as she continues to beat the drum on restraint around spending commitments.</p> <p>National has reconfirmed it intends to return the government's <a href="https://www.1news.co.nz/2026/09/29/better-picture-for-govt-books-not-a-green-light-to-spend-willis/" target="_blank">books to a surplus</a> in 2028/29, with new promises to pay for it partly through <a href="https://www.1news.co.nz/2026/10/06/national-says-it-will-cut-foreign-aid-to-boost-pharmac-medicines-budget/" target="_blank">cuts to foreign aid and welfare</a>.</p> <p>Willis, who is also National’s finance and economic growth spokesperson, said the party could see a route to <a href="https://www.1news.co.nz/2026/05/28/budget-2026-new-tax-changes-as-nz-to-return-to-surplus-sooner/" target="_blank">tax relief</a> but would not take it yet. </p> <p>“National’s approach has got us this far, but our plan needs three more years to bed in.
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