Prime Minister Christopher Luxon Confronts Labour Leader Chris Hipkins Over Cost of Living Policy Stoush

Prime Minister Christopher Luxon has launched a sharp critique against Labour leader Chris Hipkins, accusing him of lacking substantive policies to support New Zealanders grappling with the cost of living crisis. Speaking on his way to a weekly caucus meeting, Luxon accused Hipkins and the Labour Party of failing to back low and middle-income households, despite the government's efforts to ease the burden through tax relief and fiscal measures.

“They put us in this mess — I’m not taking any lectures from frickin’ Chris Hipkins and the Labour Party on not supporting low and middle-income New Zealanders because that is what this government is doing,” Luxon said, emphasizing that the government's approach is aimed at helping the Reserve Bank combat inflation through targeted fiscal policies.

The dispute comes amid rising political tensions over inflation, with Stats NZ reporting a 2.7% annual inflation rate for the year to June. Although the Reserve Bank expects this increase to be temporary, inflation has become a hot topic in political debates.

Luxon highlighted the government’s initiatives, including tax relief measures and the FamilyBoost program, while criticizing Labour for opposing these changes. He accused Labour of being “all over the place” with its policy positions on issues like public-private partnerships and early childhood education.

Labour leader Chris Hipkins responded by defending Labour’s current policy approach, noting that the party is not yet close to an election and that it plans to unveil detailed policies once it has a clearer picture of the government’s budget in 2026. “I want to make sure we can afford what we promise,” Hipkins said, emphasizing the need for fiscal responsibility.

Finance Minister Nicola Willis joined Luxon in criticizing Labour’s lack of concrete policies, pointing to a recent incident where Labour’s spokesperson, Barbara Edmonds, could not name any cost of living policy during a public address. “Now that is to me, the boy crying wolf,” Willis said on social media, accusing Labour of engaging in shallow attack politics.

Meanwhile, Hipkins highlighted that Labour has obtained data showing the limited uptake of the FamilyBoost tax credit, suggesting that few households are benefiting from the policy as intended. However, the government has since adjusted the policy settings, ensuring that more families will receive the tax credit.

As political strategies evolve, the release of detailed policies before an election has become less common, with both major parties focusing on “small target” approaches. National, for instance, delayed its final tax policy until just months before the 2023 election, while Labour is taking a more cautious approach, ensuring its policies align and are financially viable.

With the Tāmaki Makaurau by-election approaching and the next election expected in late 2026, both parties are under increasing pressure to outline their policy platforms. While National has already announced some key commitments, Labour remains tight-lipped, insisting that its internal policy development is ongoing.