Finance minister Nicola Willis made good on two promises with her first budget – tax cuts and no surprises. But the belt tightening required to do that will have longer-term consequences.

Finance minister Nicola Willis is promising to chart a ‘middle course’ in her first budget. Her bigger challenge is to bring middle New Zealand along with her.

The National Party’s tax package may be a middle-income vote winner, but it avoids the core problem of tax-free wealth. And how much the new system would cost to operate is far from clear.