United warms to National tax cuts

National is confident that it will be able to talk tax cuts with other political parties after the election on September 17.

National was thrown a lifeline yesterday when United Future said it would be willing to discuss the cuts in post-election talks.

Labour has dismissed National's tax policy saying it will have no parliamentary support for them outside the Act Party.

National's finance spokesman John Key said the tax cuts were well constructed and could "absolutely" appeal to National's likely coalition partners.

New Zealand First leader Winston Peters has not ruled out tax cuts if he goes into coalition with National, but says his plans for public spending will have to be taken into account.

United Future leader Peter Dunne said he could see room to move because of the two parties' emphasis on lifting tax thresholds.

"We think that provides a good basis for talks," Mr Dunne said. "Above all, United Future will want to make absolutely certain that the scope of any tax cut package would not lead to cuts in frontline services in education, health, law and order, and the like."

National plans around $10 billion of tax cuts over three years.

- NZPA