Labour MPs are gathering in Christchurch for a team 'away day', as the party inches closer to announcing its tax policy.

Last year's mid-winter retreat was held in Auckland to re-engage with 'supercity' residents, after the party's bruising defeat in Election 2023.

The caucus is now pushing to connect with the South Island – leader Chris Hipkins addressed the Queenstown Business Chamber, while other MPs visited flood-affected properties in Moteuka.

They will all come together in Christchurch to look to the year ahead and talk strategy for the run-up to next year's election.

The meeting comes as the government works against a tide of negative headlines about the economy, with unemployment jumping to 5.2 per cent.

National campaigned on rebuilding the economy and Prime Minister Christopher Luxon heralded 2025 as the year of "going for growth" in his State of the Nation speech in January.

The party is now battling the headwinds of an economic downturn, with some business voices, like former National leader-turned Auckland Chamber boss Simon Bridges, criticising the coalition for not doing more to stimulate the economy.

Labour has been near silent on the policy front, choosing instead to criticise the coalition's ideas and hone its messaging on the cost of living to better resonate with voters feeling the pinch.

Responding to an update on the government's transition to a universal road-user charges system, Hipkins said the timing could "clobber" those already struggling to pay the bills, but as for Labour's alternative timeline, who knows?

The strategy thus far shows some promise, with the left bloc parties – Labour, the Greens and Te Pāti Māori – holding a narrow lead over the coalition in several political polls this year.

Labour has also emerged as the party New Zealanders think has the best handle on the cost of living, according to the latest Ipsos issues monitor, but the race remains tight and the coalition parties are poised to pounce, when Labour unveils its tax plan this year.

The Post reported Labour was one step closer to endorsing a capital gains tax (CGT) – insiders say the party's policy council has narrowly voted for a CGT over a wealth tax.

While MPs will most likely discuss tax policy at today's mid-winter retreat, the public shouldn't hold its breath for an announcement. Party process requires both the council and caucus to sign off on policy.

In the meantime, the party is clearly preparing to pitch – and defend – its approach to tax. Hipkins said in March he would need time to "counter the misinformation that often goes with tax changes" before the 2026 election.

Hipkins will give an opening speech to his caucus in Christchurch before MPs have policy and strategy discussions behind closed doors.