Autumn statement: Politicians have mixed response to Jeremy Hunt's budget

In his statement to parliament, Jeremy Hunt set out new measures to tackle a £55bn ‘black hole’ in the nation's finances.

A five per cent council tax increase was confirmed, which will see millions of households see their monthly bill go up from April 2023.

Local authorities will be able to raise council tax by three per cent without holding a referendum.

Councils with social care responsibilities will be able to increase adult social care precept by up to two per cent.

Independent forecasters have said these measures could see the average Band D council tax bill rise by £250 a year.

Councillor Sean Woodward, leader of Fareham Borough Council said the increased council tax would amount to ‘around a penny a day’ for his authority.

‘That isn’t going to fill the gap at all,’ he said. 'It’s regrettable of the government not taking account of the authorities that set the absolute lowest of council taxes where a percentage hardly touched the sides.

‘I heard him say that half the country would be covered by devolution deals, I don't personally see great hopes for one in Hampshire because there is, not surprisingly, a huge antipathy towards directly elected mayors.

‘I can see it working in dense urban environments - but not in an area like Hampshire.

‘We could stand again from a good devolution deal bringing powers out of Whitehall and into councils in Hampshire.’

Gosport council leader Peter Chegwyn said: ‘They’re saying five per cent including social care which of course Gosport doesn’t have so we’re only to put it up 2.99 per cent without a referendum - less than one-third of the current inflation rate.

‘It's not good news for either taxpayers or council because it won’t cover our increased costs at all on inflation but if we put it up by 2.99 per cent that’s still a tax increase for the public.

‘It’s a lose-lose situation, neither the public nor the councils will be happy with the government but then I'm sure we won’t be the only people.’

Cllr Chegwyn added: ‘Devolution to borough council level we welcome but at the moment the government have only been talking about devolution to the county level.

‘Anything that returns power to the people and devolution to Gosport we would welcome but we don’t think that’s what the government is intending.

‘For devolution to be of any worth it means giving real powers back to district powers like Gosport so decisions on Gosport’s future can be decided by local councillors and residents.’

Home Secretary Suella Braverman, MP for Fareham said that she welcomes ‘tough but fair’ decisions to restore ‘economic stability’.

‘We’re delivering on our commitment to protect the most vulnerable by uprating benefits in line with inflation and protecting the pensions Triple Lock.

‘Businesses and households will continue to be protected through an extensive package of energy support.

‘To help low-paid workers, we are increasing the National Living Wage by 9.7 per cent – representing an increase of over £1,600 to the annual earnings of a full-time worker on the National Living Wage.’

Alan Mak, MP for Havant said: ‘The government is protecting pensioners and the most vulnerable by increasing benefits and maintaining the Triple Lock which boosts pensions, whilst also increasing spending on schools and our NHS.’

Caroline Dinenage, MP for Gosport said the budget is ‘boosting market confidence’ whilst tackling inflation and protecting public services.

‘Inflation causes instability, deters investment and erodes incomes,’ she said. ‘Tackling inflation will help ease the cost of living.’