Luxon Survives Leadership Challenge as NZ Election Looms

New Zealand Prime Minister Christopher Luxon has survived his second caucus confidence vote in four months, but faces growing pressure on his National Party ahead of the country's General Election on November 7.

Luxon called an hours-long meeting at parliament in Wellington amid speculation over his leadership following a series of political missteps and clashes, including his 'parent-child' comment about businesses and his proposal to hold a referendum on New Zealand's Mixed-Member Proportional (MMP) electoral system if re-elected.

The National Party is facing a highly competitive election contest, with recent polls showing its support rate at 31% in the Taxpayers' Union-Curia poll, but just 28.7% in the Radio New Zealand-Reid Research poll, while the opposition Labor Party's support rate stands at 30%, ahead of National at 29%.

New Zealand's annual inflation rose to 4.1% in the June quarter, above the Reserve Bank's 1-3% target range, and unemployment has remained elevated, putting pressure on the government to control spending and return the budget to surplus.