Families would pay for the left's big spending plans either through higher interest rates, higher taxes, or both, Treasurer Bill English said today.

"A Labour-led government is proposing to go on a $4 billion to $6 billion spending spree. That's going to cost New Zealand families one way or another.

"More than 200,000 taxpayers and their families will be paying through higher taxes and every New Zealand family, including those on low and middle incomes, is likely to end up paying through higher interest rates.

"Families have three more days to think about the alternatives. The worst option is drifting into change for no real reason.

"Many of Labour's plans are driven by left-wing ideology, not common sense, and that is just change for the sake of it.

"Interest rates are now at 30-year lows and families have reaped the benefits. Along with low interest rates, inflation is low, the economy is growing at 4% a year, and unemployment is below 7%. Why change a successful formula?

"The high spending plans of Labour, the Alliance and the Greens will be the best recipe possible for pushing up interest rates.

"This is not scare-mongering. The last time Labour was in power interest rates were around 20%. Families want certainty about their mortgages. Having to worry about interest rates creeping up and up is the last thing we need.

"Labour wants to put tax up for families, National's plans mean that everyone earning more than $200 a week will pay less tax," said Mr English.

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