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Hipkins Focuses Labour Campaign on Cost of Living

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  Published in Business and Finance on Sunday, February 22nd 2026 at 22:34 GMT by rnz
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Wellington, New Zealand - February 23rd, 2026 - Prime Minister Chris Hipkins has signaled that addressing the rising cost of living will be the defining theme of Labour's campaign heading into this year's general election. In a statement to Morning Report today, Hipkins acknowledged the significant financial pressure being experienced by New Zealanders and committed the government to prioritizing policies aimed at easing this burden.

The announcement positions Labour squarely against the National Party, led by Christopher Luxon, who launched their campaign last week with a central pledge to cut income tax rates. While National frames tax relief as the path to economic improvement, Labour appears intent on focusing on direct measures to alleviate immediate household expenses.

"People are feeling that pressure. We need to be really clear about how we're going to address that, and that's going to be our focus," Hipkins stated. He emphasized that Labour will undertake a comprehensive review of existing policies and explore new initiatives designed to make life more affordable for New Zealand families.

This commitment comes amidst a challenging economic climate. New Zealand, like many nations, has been grappling with persistent inflation, rising interest rates, and global supply chain disruptions. These factors have contributed to increased prices for essential goods and services, including food, fuel, and housing. While inflation has shown signs of cooling in recent months, it remains above the Reserve Bank's target range, and many households continue to struggle with tightening budgets.

Hipkins stressed the need for fiscal responsibility, acknowledging the importance of maintaining funding for essential services and avoiding unsustainable levels of debt. However, he insisted that this fiscal prudence would not come at the expense of supporting vulnerable New Zealanders.

"We've got to be responsible about the decisions we make, we've got to make sure we're continuing to fund essential services, and we've got to be careful about adding to debt," Hipkins explained. "But we also need to do things to help people who are struggling."

The Prime Minister indicated that the government's approach would be targeted, focusing resources on those most in need. This suggests a departure from universal policies and a move towards more means-tested support programs.

"It's not about everything for everyone, it's about ensuring those who are really struggling get the support they need," he said.

Political analysts predict this targeted approach could involve bolstering existing welfare programs, expanding access to affordable healthcare and education, or implementing new subsidies for essential goods and services. Some speculate that Labour may also revisit policies related to rent controls or affordable housing, areas where they faced criticism in their previous term.

The contrast between Labour and National's approaches is becoming increasingly stark. Luxon argues that tax cuts will stimulate economic growth, incentivize work, and ultimately benefit all New Zealanders. He contends that reducing the tax burden will free up capital for investment and create jobs. However, critics argue that tax cuts disproportionately benefit higher-income earners and may not provide sufficient relief to those struggling with the cost of living.

The upcoming election is expected to be closely contested, with both Labour and National vying for the support of swing voters. The economy is widely seen as the key battleground, and the parties' differing approaches to affordability will likely be a central focus of debate.

Beyond the immediate pressures of the cost of living, experts suggest that longer-term structural issues are also contributing to the affordability crisis. These include a lack of housing supply, rising inequality, and the impact of climate change on food prices and infrastructure costs. Addressing these challenges will require comprehensive and sustainable policies that go beyond short-term fixes.

The government's upcoming budget, expected in May, will be closely scrutinized for evidence of Labour's commitment to affordability. Observers will be looking for concrete measures to alleviate financial pressure on households, as well as a clear outline of how these policies will be funded and sustained in the long term.