Nordmeyer's colleagues were reluctant to cut government spending or break expensive election promises, so Nordmeyer was left with little option but to raise taxes, which was recommended by both the Treasury and Prime Minister Walter Nash (himself a former Minister of Finance). The budget increased social security benefits but was very unpopular, not least with Labour's traditional working-class supporters.
Nordmeyer's colleagues were hesitant to cut government spending or break election promises, so he had no choice but to raise taxes. This action, supported by the Treasury and Prime Minister Walter Nash (a former Finance Minister), increased social security benefits but was unpopular among Labour's traditional working-class supporters.