Businesses and working people 'really hurting' as cost of living crisis continues, hopes Budget 2022 will deliver

Business NZ and the New Zealand Council of Trade Unions (CTU) are holding out hope that Budget 2022 will ease the pain of the cost of living crisis, as Kiwis continue to feel the pinch in their back pocket. 

CTU economist Craig Renney told AM the Budget has to work for working people. 

"We want to see continued investment in essential public services and we want to see an economic plan."

Renney said that plan needs to deliver on the cost of living crisis. 

"Certainly the public transport cut - we would advise going further and actually reducing the fares, even more, to make it easier for really low-income workers in New Zealand."

He added the Finance Minister should continue the Government's fuel excise tax cut.

"If not, inflation just mechanically will continue to go further up and further up in the future."

Business NZ chief executive Kirk Hope said Budget 2022 is "a weird" budget because businesses don't want to see inflationary spending. 

"That is really eating into their bottom line and it's eating into the people's bottom line generally."

Businesses and working people 'really hurting' as cost of living crisis continues, hopes Budget 2022 will deliver
Photo credit: Image - Newshub

Hope said Minister Robertson's challenge is to make announcements that aren't inflationary. 

"So how do you spend $6 billion and not make it inflationary - well we've worked with the Government a lot to try and get more workers into the country because that is one of the ways you can stop at least wage inflation."

He added the Finance Minister has to tackle both short and long term issues Kiwis are facing.

"Kiwis are really hurting, it's Kiwi workers, Kiwi businesses, small businesses, everybody is feeling the pain in the pocket."

With $6 billion in Roberston's back pocket, Hope said Roberston needs to be careful. 

"Be very careful with how you spend it, make sure it's programmed so you can do it in a way that it's not crowding out the private sector because, otherwise again, that's going to be inflationary."

Watch the full interview above.