“Today’s interest rate hike to 2.5 per cent is driven by Labour’s spending spree and the next government must have the courage to pass a mini-budget in its first 100 days to implement the spending cuts in ACT’s alternative Real Change Budget,” says ACT Leader David Seymour.

“We have seen a 3 per cent increase in mortgage rates in just 12 months. New Zealanders are paying $300 more a week on a $500,000 mortgage compared with this time last year.

“Adrian Orr told Grant Robertson he needed ‘targeted fiscal policy’ to help fight inflation. Grant replied with record spending, so Adrian put everyone’s mortgage up. Grant hasn’t done his job, so now Adrian is doing his.

“Kiwi families being battered by record prices are now seeing their mortgage rates going up as the Reserve Bank makes up for Labour’s out of control spending.

“Other political parties haven’t been able to say how they would reduce government spending. Meanwhile, ACT’s Real Change Budget clearly set out a plan to reduce spending by a $6.8 billion to kill inflation and show taxpayers some respect. We make no apology for our plan.

“We should not have a Government that borrows a billion dollars a year for KiwiSaver subsidies to help people save.

“We should not have a Government that gives one-and-a-quarter billion dollars of corporate welfare to businesses in an overheated economy, or assume politicians are better investors than the people who earned it.

“We should not be spending half a billion dollars on a winter energy payment that goes to millionaires and beneficiaries alike.

“We should not be spending three quarters of a billion dollars on a Fees Free scheme that mainly benefits kids from middle and upper middle class homes.

“We should not be spending a quarter of a billion dollars on subsidies and ad campaigns telling people to save energy and paying them to plant trees.

“These spending reductions are necessary if we’re going to kill inflation and show hardworking taxpayers some respect.

“It doesn’t have to be this way. Real change is possible. But it requires courage. Avoiding difficult choices has given us the country we have today.

“With enough political will, the next government can pass a mini-budget in the final months of 2023 to deliver ACT’s proposed reductions in wasteful spending.

“Some people think we can get back on track just by changing the politicians. But it’s not that simple. Five times National has followed Labour into government and five times Labour’s policies have survived.

“Changing the government isn’t enough. We need to change direction too. History tells us the courage to reverse Labour’s policies and have real change won’t exist unless ACT is a big part of the next government.

“The question is: Do we want to carry on declining as a country, or do we want to make real change?”

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