Prime Minister Sanae Takaichi expressed determination to swiftly compile an economic package focused on combating rising prices during a question-and-answer session in the House of Representatives on November 5, calling for opposition cooperation. Opposition parties pressed for consumption tax cuts and delays in social security reforms, while the government offered responses lacking concrete measures. The ruling coalition lacks a majority in both houses, making broad cross-party support essential.
Prime Minister Sanae Takaichi faced opposition questions in the House of Representatives on November 5, 11 days after her policy address on October 24, delayed by diplomatic engagements including a visit from U.S. President Donald Trump. This marked the first substantive Diet debate in about 4.5 months since the ordinary session closed in late June. Constitutional Democratic Party of Japan (CDPJ) leader Yoshihiko Noda highlighted soaring food prices impacting household budgets, demanding a zero consumption tax rate on food and beverages for up to two years.
Takaichi expressed caution, noting that lowering the tax would require preparation time for businesses to adjust cash registers and other systems. On the abolition of the provisional gasoline tax surcharge, an agreement was reached with six parties, including the Liberal Democratic Party (LDP) and CDPJ, to eliminate it by December 31 this year, following opposition insistence. When pressed by Noda, Takaichi replied, “We will act firmly based on the results of discussions among the parties.” She also reiterated plans for a 'tax credit with cash payments' system to ease tax and social insurance burdens on low- and middle-income earners, responding to Noda's call for haste by saying, “We will establish a national council to facilitate careful discussions with the opposition parties included.”
The LDP's coalition with the Japan Innovation Party (JIP) falls three seats short of a majority in the lower house and four in the upper, excluding the speakers. Priority is placed on engaging Komeito, which withdrew from the coalition, to advance policies. JIP co-leader Fumitake Fujita described the coalition as a “full-fledged reform-minded conservative coalition government,” emphasizing that “the unity of conservative forces is indispensable” for addressing post-war issues, calling it “the dawn of Japanese policy.” However, conservative-focused policies risk alienating Komeito, complicating governance.
Regarding high-cost medical expense benefits, Noda opposed raising patient burdens, while Takaichi stated, “We will proceed carefully with deliberations to ensure the burden does not become excessive.” The government's reform proposal, which could increase burdens by 70% for some higher-income individuals in two years, was postponed amid protests. Noda affirmed the Japan-U.S. alliance as the foundation of foreign policy but expressed caution on defense spending increases, with the CDPJ maintaining its stance to abolish unconstitutional parts of security-related laws.
