Key indicates tax cut announcement

The National Party is likely to make an announcement before the election on future tax cuts, leader John Key says.

Mr Key says the party is crunching the numbers at the moment following last week's Pre-election Economic and Fiscal Update (PREFU) from the Treasury.

Mr Key would not be specific about what was being considered but said an outline of future tax cuts was likely.

"We would like to lower taxes if we can, we'll only do it in a fiscally responsible way. Post the PREFU we're sort of cutting those numbers to see what sort of headroom we've got.

"If we can say a bit more definitively about that we will, coming into election day."

Mr Key said any tax cut would take into account the need for the Government to be in surplus.