The Government is accusing the National Party of being in “disarray” after Finance Spokesperson Nicola Willis said the party would drop the tax thresholds indexation policy just six months after it was announced.

National said tax cuts would not be inflationary, but its finance spokeswoman Nicola Willis confirmed the policy was dropped for now.

Chris Hipkins said “this was Chris Luxon’s first policy as National Party Leader, and now his Deputy Nicola Willis has dumped it six months later. It’s the sort of disarray we got used to in the days of Bridges, Muller and Collins.”

“This has got internal division written all over it. The fact is Luxon was selling his State of the Nation policy as recently as yesterday in his media round, seemingly unaware Nicola Willis had already spoken to journalists about scrapping it prior to him going on air.” Hipkins said.

“It appears National’s only cost of living policies are $1 billion in tax cuts to landlords and cutting the top tax rate for New Zealanders earning over $180,000, which shows just how out of touch National has become under Chris Luxon.’