25 Aug 2014

Labour drops policies in revised budget

2:02 pm on 25 August 2014

The Labour Party is dropping six of its yet-to-be-announced policies which it said was to ensure it would run strong surpluses if it leads the next Government.

Following the release of the Pre-election Economic and Fiscal Update (PREFU), which revealed the Government's tax take would be lower than earlier forecast, Labour has put out its revised alternative budget.

Labour Party leader David Cunliffe said today that six policies costing up to $300 million a year in total will now be dropped.

"We're running robust books, we'll run surpluses every year, as a means of guaranteeing that and paying off National's record debt. We are re-timing some things, we are moving the indexation on the billion dollar spending allowance for health, education and social services."

Mr Cunliffe said Labour would also delay by six months the introduction of free doctors' visits and prescriptions for the elderly.

National Party leader John Key said Labour's numbers did not add up.

"I think Labour are in trouble with their numbers. I mean they've basically committed $18 billion work of expenditure - four budgets in a row - even the Greens don't trust Labour with their numbers."

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