Government Announces Public Spending Cuts to All Public Service Organisations

Prime Minister Christopher Luxon has revealed that the government is to extend public spending cuts to all public service organisations.

Luxon asked all government departments to identify potential savings, with a deadline of 2 February to draft plans to cut budgets by at least 6.5%.

The money saved is to be used to fund the government's tax plan.

The largest public sector union, the Public Service Association, has warned that services relied on by New Zealanders are at risk and that the government is scrambling to find funds after the proposed tax on foreign buyers of residential property was scrapped.