Over in the UK, household  energy prices will rise by 13 percent a year in July, as soaring wholesale costs caused by the impact of the Iran war hit bills for the first time.

Energy costs have jumped as a result of Iran blocking the crucial Strait of Hormuz shipping route - where a fifth of the world's oil and gas is carried.

UK correspondent Gavin Grey says even if the Strait was unblocked tomorrow, this conflict would still leave a significant economic impact. 

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Over in the UK, household &nbsp;energy prices will rise by 13 percent a year in July, as soaring wholesale costs caused by the impact of the Iran war hit bills for the first time.
Energy costs have jumped as a result of Iran blocking the crucial Strait of Hormuz shipping route - where a fifth of the world's oil and gas is carried.
UK correspondent Gavin Grey says even if the Strait was unblocked tomorrow, this conflict would still leave a significant economic impact.&nbsp;
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Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

Best of Business

Gavin Grey: UK correspondent on energy bills going up as a result of the Iran war

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f39291f4-fec0-4695-8e81-b4570085490a/transcript

Global transport company Mainfreight's full-year net profit is down 8.5 percent on the year earlier, despite an improved performance in the second half of the year end in March.

Despite this, the company's hopeful that things can turn around, despite the conflict in the Middle East.

Mainfreight CEO Don Braid explained further.

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Global transport company Mainfreight's full-year net profit is down 8.5 percent on the year earlier, despite an improved performance in the second half of the year end in March.
Despite this, the company's hopeful that things can turn around, despite the conflict in the Middle East.
Mainfreight CEO Don Braid explained further.
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Don Braid: Mainfreight CEO on the company's full-year net profit taking a hit

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2a7f6692-b7a0-42e0-9673-b45800825c71/transcript

A tax expert says it's good to draw a line under recent changes to charity rules.

This year's Budget tweaks the Research and Development Tax Incentive, simplifies the fringe benefit tax, and expands the Foreign Investment Fund rules to all taxpayers. 

It also caps the tax credits that can be received on not-for-profit donations. 

Deloitte tax partner Robyn Walker says it's still very generous by international standards. 

She says you can still donate $100,000 and get a $33,333 tax credit - and only a small number of people donate above that. 

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A tax expert says it's good to draw a line under recent changes to charity rules.
This year's Budget tweaks the Research and Development Tax Incentive, simplifies the fringe benefit tax, and expands the Foreign Investment Fund rules to all taxpayers.&nbsp;
It also caps the tax credits that can be received on not-for-profit donations.&nbsp;
Deloitte tax partner Robyn Walker says it's still very generous by international standards.&nbsp;
She says you can still donate $100,000 and get a $33,333 tax credit - and only a small number of people donate above that.&nbsp;
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Robyn Walker: Deloitte tax partner on the tax changes included in Budget 2026

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/ff1ef5f3-394d-45ea-b366-b458008011dc/transcript

Well, you would have done well to heed Nicola Willis’s warnings ahead of this Budget that there would be no spend-up, because there is no spend-up.

There is no money for - well, there is money for the important stuff. You’ve got the schools and the classrooms, and the hospitals, and the Waikato Expressway, and Winston Peters’ pet projects.

But everywhere else, there is just no new money. It is tight.

Now, that is exactly how it should be. And in fact, I would say this still doesn’t go far enough.

For the third Nicola Willis Budget in a row, it isn’t tight enough because we haven’t even hit our debt peak yet. We are still going up that peak mountain. That is still two years away, which means that interest payments are already at $9 billion and they’re only going to go up.

It’s going to take us to about 2040, roughly, before debt is back to where Bill English left it as a proportion of GDP.

And that is just the most optimistic scenario. The rest of the scenario is basically never getting back down to where Bill English left it.

Nicola Willis is making a virtue today of the fact that she’s getting the books back in black by 2028/29, which she says is earlier than expected.

But that is a little bit of game-playing that’s going on, because it was always going to be 2028/29 until December.

Then in December it changed, then it became 2029/30. Now it’s just been brought back again to where it was about six months ago.

And that is only, by the way, because Nicola Willis is using a made-up measure, OBEGALX, which makes surplus appear a year earlier than the standard old measure, which basically would have had surplus arriving only in 2030 or thereabouts.

And by the way, all of this is a broken promise, because Nicola Willis promised the country that if you voted for National at the last election, she would have the books back in the black.

When? Today. This year.

But after three Budgets, I think we’ve learned to temper our expectations on that front.

Now, on the bright side though, she has decided to borrow $6 billion less than she had planned to. I will take that.

And while there is a lot of poor spending that continues, at least there isn’t new, more poor spending.

And for that, I suppose you have to give the Budget a solid holding-pattern score of 6 out of 10.

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Well, you would have done well to heed Nicola Willis’s warnings ahead of this Budget that there would be no spend-up, because there is no spend-up.
There is no money for - well, there is money for the important stuff. You’ve got the schools and the classrooms, and the hospitals, and the Waikato Expressway, and Winston Peters’ pet projects.
But everywhere else, there is just no new money. It is tight.
Now, that is exactly how it should be. And in fact, I would say this still doesn’t go far enough.
For the third Nicola Willis Budget in a row, it isn’t tight enough because we haven’t even hit our debt peak yet. We are still going up that peak mountain. That is still two years away, which means that interest payments are already at $9 billion and they’re only going to go up.
It’s going to take us to about 2040, roughly, before debt is back to where Bill English left it as a proportion of GDP.
And that is just the most optimistic scenario. The rest of the scenario is basically never getting back down to where Bill English left it.
Nicola Willis is making a virtue today of the fact that she’s getting the books back in black by 2028/29, which she says is earlier than expected.
But that is a little bit of game-playing that’s going on, because it was always going to be 2028/29 until December.
Then in December it changed, then it became 2029/30. Now it’s just been brought back again to where it was about six months ago.
And that is only, by the way, because Nicola Willis is using a made-up measure, OBEGALX, which makes surplus appear a year earlier than the standard old measure, which basically would have had surplus arriving only in 2030 or thereabouts.
And by the way, all of this is a broken promise, because Nicola Willis promised the country that if you voted for National at the last election, she would have the books back in the black.
When?&nbsp;Today. This year.
But after three Budgets, I think we’ve learned to temper our expectations on that front.
Now, on the bright side though, she has decided to borrow $6 billion less than she had planned to. I will take that.
And while there is a lot of poor spending that continues, at least there isn’t new, more poor spending.
And for that, I suppose you have to give the Budget a solid holding-pattern score of 6 out of 10.
LISTEN ABOVE

Perspective with Heather du Plessis-Allan: I would argue Budget 2026 wasn't tight enough

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f6cd3068-28ed-4240-b4ae-b45800796da1/transcript

Gavin Grey: UK correspondent on energy bills going up as a result of the Iran war

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