Budget 2024: Government promises to reinvest public sector cost savings in ‘critical front-line services’

Finance and Public Service Minister Nicola Willis said the Government has ensured front-line services will face "an overall funding uplift" in the upcoming Budget.

The Government has vowed that critical services will see a funding boost in this year’s Budget, as the heads of thousands of public servants from various departments are on the chopping block.

Departments need to find cost savings of between 6.5 and 7.5 per cent on average, with no agency immune from searching for ways to save taxpayer funds. It comes after growth across public service agencies in recent years - which has been slammed by both National and Act while on the campaign trail and now at the helm of Government.

All eyes are now turning to May 30 - Budget day, when Finance and Public Service Minister Nicola Willis will unveil her first blueprint for annual Government spending, as agencies slash roles.

Regarding the upcoming Budget, Willis said the Government has ensured “health, education, Oranga Tamariki, police and other critical front-line services will face an overall funding uplift”.

The minister’s comment follows criticism over the proposed cuts at Oranga Tamariki and the Ministry of Education, both announced on the same day, which would see more than 1000 jobs cut within the two agencies alone.

Minister for Children Karen Chhour is defending the huge changes at OT, while acknowledging it is “a difficult time” for staff and their families.

“The Government’s priority is to invest more in front-line services, and this [Oranga Tamariki] proposal is consistent with that aim,” Chhour said in a statement to NZME.

The minister suggests Oranga Tamariki will come out of this consultation and job-loss process with a “tighter focus on its core responsibilities”, which she believes will result in a stronger, more effective front-line service for vulnerable children.

Education Minister Erica Stanford appears to be on the same page as her ministerial counterpart Chhour, saying while she is unable to go into specifics just now, “there will be increased investment in education this year”.

“We are also shifting resources to the front line with the development of a knowledge rich curriculum that will support teachers and lift student achievement,” Stanford said.

Stanford expects that“roles will be created” in the curriculum space in response to the directive, as hundreds of roles face the axe at the Ministry of Education.

Health Minister Dr Shane Reti said “more resources will be directed to front-line health services” as part of Budget 2024.

Police Minister Mark Mitchell would not comment on specific funding decisions before the release of the Budget, but said the Government was “committed” to moving resources to the front line.

A police spokesperson said the agency is considering what might be required to ensure it is in a “strong financial position” for the future, adding it is looking to make “cost savings in some areas”, balanced with a mandate to deliver core services.

“We remain committed to delivering on our mission to ensure people can be safe and feel safe in our communities, roads and homes,” the spokesperson added.

Police pay has recently topped the political agenda, with officers and ministers going back and forth in a bid to strike a deal. Police recently strongly rejected the latest pay offer, and have called on the Government to put more on the table.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, public service agency reform and transport.