National leader Christopher Luxon has adjusted his message on taxing the wealthy, saying his party plans on leaving Labour's policy alone if they win next year's election - for now.
Speaking with Q+A this morning, he said the rate of inflation under the current Government has forced National to sideline plans to repeal Labour's 39% tax rate on those making over $180,000.
"As much as we would like to do that, the bottom line is we will not be able to afford to do that in our first term.
"Based off what we're looking at around interest rates, inflation and recession, that is something that we just will not be able to afford to do."
Luxon has touted National as the "party of economic management" ahead of next year's election, but was pressed on his plans for the multi-billion dollar tax cuts despite early signs of inflation.
Between October 2021 and February 2022 the Reserve Bank raised the Official Cash Rate (OCR) three times in a row, a clear early sign of inflation, but in March Luxon announced reductions to the 39 cents on the dollar for high earners.
He stood by his stance on National's economic abilities, doubling down on the Government's handling of inflation and arguing that the tax cuts would work under better conditions.
"We're gonna inherit an economic mess from Labour, there is no doubt about it, and we're gonna clean it up and sort it out."
On Wednesday the RBNZ raised the OCR by 75 basis points to 4.25%, the largest hike in its 23-year history.
Later the same day, it stated that the country was likely to enter recession in 2023.
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