“Labour’s economic sugar hit is fading and Kiwis are being left with a hangover of debt, rising prices and taxes”, says ACT Leader David Seymour.

“Compared with Budget forecasts, inflation will be three times higher next year and the Government will take $55 billion more in tax between 2021 and 2025.

“Labour’s Covid-19 response has been running on a sugar hit of cheap credit and borrowed money.

“That money is now sloshing around the economy and pushing up the price of everything.

“Today’s HYEFU forecasts prices will rise by 5.1 per cent next year, outpacing wages. The Reserve Bank believes inflation could get close to 6 per cent.

“At this year’s Budget, 2022 inflation was forecast to be 1.7 per cent – it’s now forecast to be 5.1. The cost of living is out of control.

“Doing the groceries, filling up the car and paying the rent is more expensive because of Labour’s out of control borrowing and spending – but wages aren’t keeping up. Workers are going backwards under Labour.

“HYEFU also reveals how much debt our kids and grandkids will have repay. Net core Crown debt will grow to $165.5 billion in 2024. Taxes will have to rise, or spending will have to be cut, to pay for Labour’s out of control spending.

“To rub it all in, Grant Robertson is raking in record taxes to pay for all of his spending.

“Treasury is forecasting Robertson will take an extra $55 billion from Kiwis between now and 2025 than was forecast at the Budget.

“Labour is taxing New Zealanders harder than any government in our history.

“Labour’s chickens are coming home to roost and Kiwis are paying the price. We can’t afford to continue like this.

“This week, ACT proposed a plan to get back to sound economics and tackle the cost of living crisis.

“We would get borrowing, spending and debt under control and create an environment where New Zealanders are rewarded for producing valuable goods and services the world wants to buy.

“We would also deliver middle-income tax relief. ACT would reduce the 30 per cent tax rate to 17.5 per cent. Our plan will put $2,000 more a year, or $40 more a week, in the pockets of someone on the average wage to help them deal with the rising cost of living.”

© Scoop Media