Accelerate Budget Special Alert 2022
Predictions for the budget centred on inflation, the cost-of-living crisis and climate change, narratives that the Government isn’t doing enough to help the “squeezed middle”, and business sectors signalling they are still trying to recover from blows dealt by the pandemic.
Wellbeing Budget 2022 – A Secure Future positions itself to acknowledge the difficult times we’re living in while aiming to help move towards “a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost-of-living pressures.”
Housing affordability measures so far have been weakened by rising interest rates, increased lending regulation and the subsequent flight of first home buyers from the market. … Read more
The last two years have been about trying to keep the population and the economy as healthy as possible. Not surprisingly, the 2022 budget allocates a huge slice to health.
A $13b boost is planned over the next four years, for health reforms and infrastructure including hospitals, mental health, and Māori health services.
Inflation and the cost of living
The irony of two years’ trying to keep the economy as healthy as the population, is that the economy is currently running well enough but ordinary New Zealanders can’t keep up.
Soaring global inflation is predicted to ease from later this year. The Budget introduces measures designed to get New Zealanders through the meantime. … Read more
What’s in it for the business?
While some cost of living and climate initiatives may assist businesses, certain industry priorities are targeted specifically: Financial support for employers to retain and take on new apprentices is extended until end December 2023.
Funding for Industry Transformation Plans (ITPs) includes allocations for the Construction Sector Accord Transformation Plan … Read more
Business Growth Fund
There’s $100 million in capital funding for the new Business Growth Fund for SME businesses needing money to grow. The Government will buy minority stakes in small businesses that want to expand, investing alongside banks.
Banks will refer businesses “where equity finance would be more appropriate than debt finance” … Read more
$60 million is allocated to improve broadband in under-served areas of the country.
Given how many New Zealand businesses are small and how many start up and carry on in rural areas, this may be a welcome leg up to frustrated business owners trying to grow online presence and streamline access to online services … Read more
Climate change initiatives in Budget 2022 follow the Government’s recently released Emissions Reduction Plan, and several initiatives have already been announced in that plan.
$2.9 billion of funding (sourced from cash proceeds from the Emissions Trading Scheme) is allocated to investments to be made by the Climate Emergency Response Fund (CERF) … Read more