Reforms to roll back to expansion of local government activities and to encourage amalgamations like the Auckland “super-city” aim to end 10 years of high annual rates increases and wind back expanding local government debt levels.

Both leaders to give major addresses Thursday. PM says public sector cuts will not be "savage".

Chief executive Roger Sutton addresses Parliament’s finance and expenditure committee on the pace of his department’s work.

“This is not just about tightening our belts. This is not a fad diet. This is about a shift to a healthier lifestyle."