Prime Minister Christopher Luxon does not rule out new taxes or reduced tax cuts due to a $3.9bn budget shortfall.

Prime Minister Christopher Luxon will not rule out introducing new taxes or reducing promised tax cuts as fiscal warnings reveal a potential $3.9bn hole in the budget. This comes after Deputy Prime Minister Winston Peters endorsed an analysis showing a $5.6bn hole in the government's plan. The government has been managing expectations, with economic growth expected to be slower than anticipated over the next few years.