Key hints at tax cuts delayed, not cancelled

John Key. Photo / Herald on Sunday

Tax cuts look set to be delayed rather than cancelled, Prime Minister John Key indicated today.

Key has previously raised the possibility of a delay for the promised 2010-2011 tax cuts and today firmed that up.

"I certainly wouldn't support a cancellation of tax cuts but I can't rule out a delay," he told NewstalkZB.

He said there was "a lot of difference between a cancellation and delay" and that option "could be acceptable" to him.

While tough calls were made entitlements had been preserved in the budget.

"We've got on top of our debt position, I think the rating agencies will take comfort from what we've done. I think it's going to be a good budget but its a budget for very difficult times."

There would be more money for health, education and policing.

"There are definitely areas where we are spending more. What we have done is spent our first six months in office sifting through programmes making sure they present value for money where they don't we've cut those.

"And if fact what you will see in the budget is how successful we've been."

-NZPA