In a seismic shift in New Zealand’s political landscape, conservative businessman Christopher Luxon and the centre-right National Party are poised to lead the nation after a resounding election victory. With nearly all votes counted on Saturday, the National Party claimed around 40 percent, positioning itself to form a new administration alongside its preferred coalition partner, the libertarian ACT party, which garnered nine percent of the vote.

Outgoing Prime Minister Chris Hipkins, who assumed office just nine months ago, conceded defeat late Saturday, acknowledging Luxon’s triumph. The exact composition of Luxon’s government is yet to be finalised as ballots continue to be tallied. Luxon, a former executive and relative political newcomer, addressed supporters in Auckland, expressing his commitment to making the country “even better” and pledging to get it “back on track.”

The election outcome marks a significant departure after six years of liberal governance, primarily led by Jacinda Ardern, who resigned, citing a depletion of energy for the role. Ardern’s popularity waned due to enduring COVID-19 restrictions and a historically high inflation rate.

The Labour Party, now led by Chris Hipkins, secured just over 25 percent of the vote in Saturday’s election, a stark decline from its landslide victory in the last election under Ardern. Labour faces further challenges, potentially losing Ardern’s previous electorate seat in Mount Albert, a liberal stronghold for decades. Foreign Minister Nanaia Mahuta also lost her constituency seat.

Luxon’s promises include tax cuts for middle-income earners, addressing inflation concerns, eliminating sales taxes on fruits and vegetables, and taking a tough stance on crime. However, with a slim majority, Luxon may need support from the populist New Zealand First Party and the ACT party. The final vote count, including overseas and special votes, is expected to be revealed in early November, determining the full extent of Luxon’s mandate.