Labour vows first pay equity agreement before next Budget amid fiscal debate

Labour's finance spokesperson Barbara Edmonds committed to securing the first pay equity settlement for care and support workers before the first Budget, citing union pressure. The pre-election Economic and Fiscal Update presented an improved surplus, yet analysts warned that the figures conceal deeper fiscal issues. Opposition parties, including National and the Greens, challenged Labour on how the pay equity initiative will be financed and warned of additional spending reductions.

Prime Minister Chris Hipkins described the update as a verdict on the opposition's debt and inflation record, emphasizing that revenue forecasts remain robust despite slower house-price growth. National leader Christopher Luxon praised the surplus but expressed doubt about altering the superannuation eligibility age. ACT leader David Seymour used the update to argue for larger cuts to public spending and a reduction in the public-service workforce.