“The 7.7 per cent annual increase in household cost of living is nothing compared to the 10.7 per cent annual increase in tax revenue Grant Robertson has given himself,” says ACT Leader David Seymour.

“Stats NZ’s household living-costs price index states that the cost of living has increased for the average household by 7.7 per cent in the September 2022 quarter, the highest increase since the index began and 0.5 per cent higher than annual inflation.

“For a long time, Labour has said the cost of living crisis isn’t its fault, blaming overseas factors. But two of the biggest factors piling pressure on to Kiwi households are interest rates and taxation, which they are solely responsible for.

“Grant Robertson knows as well as anyone if you print more money you get more of it back in taxes, and his money printers have been blowing smoke as he has relentlessly printed and spent over the past couple of years. He has increased the tax take by 10.7 per cent in the past year, while still managing to spend $9 billion more than he is taxing. This is why inflation continues to bite and the cost of living is getting worse for Kiwi households.

“Attempts to tame inflation mean higher interest rates, and homeowners are being hammered by a 39 per cent increase in interest payments for the average household.

“Labour constantly tells us what a good job they did of COVID management, quarantining an island nation from COVID, but now the costs are stacking up for all to see. In truth, we had a very expensive COVID mismanagement, and New Zealand taxpayers will feel it for a long time to come.

“Grant Robertson needs to ask himself what actions he can take to reduce the cost of living pressure on Kiwi households, the first thing is reducing his Government’s spending that is fuelling inflation and interest, and the second thing is providing Kiwis with some much needed tax relief.

That is exactly what ACT’s Alternative Budget for Real Change would do. It would reduce Expenditure by a net $5.7 billion in its first year, and tax by $3.3 billion for a $2.4 billion lower deficit than Labour proposes with its budget.

“ACT’s alternative budget introduces more tax cuts when affordable in its second year, delivering a surplus in 2024/25 as forecast by Labour’s budget and $7 billion less debt over the four year forecast period.

“ACT’s alternative budget would also deliver someone on a middle income, say a nurse with one child earning $70,000 a tax cut of $2,303 per year in year one. That is the kind of relief New Zealanders need in the face of out of control Government spending.”

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