The lead councillor for finance at Southampton City Council has said the Government has delivered a "kick in the teeth" for councils after snubbing social care. 

Cllr Simon Letts said he wanted extra funding to help councils provide social care services but this was missing from the Autumn Statement announced in the House of Commons on Wednesday.

It comes after Cllr Letts previously said the authority may have to ask for an emergency loan from Government as it faces a financial crisis.

Cllr Letts said: "This represents a kick in the teeth for councils and the residents that rely on the vital services we provide."

He said support for social care would "help us to reduce next year's budget deficit" and cut the amount of support needed in future.

Tax cuts for businesses and workers were announced by Chancellor Jeremy Hunt, as well as an increase to the national living wage.

But Geoff Cooper, Lib Dem parliamentary spokesman for Romsey and Southampton North, said it was "full of pre-election sweeteners". 

READ MORE: Southampton City Council axes jobs and may need emergency loan

He said: “Many people will see less of their earnings going to the government next year.  However, most will not feel better off because this is set against a background of rising food and fuel prices and swingeing increases in mortgages.

"But the public are not easily fooled and will recall the years of pay freezes and austerity, particularly if they work in the public sector.

"After 13 years of Conservative government most people are worse off financially and are also suffering the effects of underinvestment in our public services.

"In real terms we might pay a little less than today but more than we were paying in summer 2022."

Daily Echo: Royston Smith MP.Royston Smith MP.

Conservative MP for Southampton Itchen, Royston Smith, said a "strong economy and a reduction in debt and inflation will promote further growth and create jobs".

He said: "At today’s Autumn Statement, the Chancellor announced that the Government has met its economic targets, inflation has been halved, debt is falling, and the economy is growing. 

"Many of my constituents are concerned at the cost-of-living challenges. Reducing inflation is key to lowering costs, but the Government is also providing support to vulnerable people and those who need it most.

"Business taxes will be cut by £11 billion and over one million small businesses will be protected with a further freezing of business rates."

But leader of the council, Cllr Satvir Kaur, said: “The Local Government Association has warned that councils in England will face a £4 billion shortfall if Government doesn’t act and take action now.

"Local council leaders nationally and regionally are working cross-party to encourage Government to give us fairer funding so that we can preserve vital public services our communities rely on, and our cities can reach their economic potential.

"It’s clear from today’s Statement, that they either don’t care or have given up on the communities we serve.”

Despite concerns over a lack of support for council services the Chancellor did announce an extension to the tax-free period for freeports including Solent. 

The change will see the tax-free period enjoyed by the freeport extended from five years to ten with a new £150 million Investment Opportunity Fund to support freeports.

READ MORE: Southampton City Council wants to sell One Guildhall Square

The move has been welcomed by Cllr Letts who said without this, the freeport scheme would be "unsustainable". 

"The freeport announcement is positive news. By the time anything got built the tax-free period would have run out. So we welcome that."

Huw Miles, managing partner at Paris Smith in Southampton, said: "The biggest engine of the economy is consumer spending (60 per cent of GDP in 2022) and the government must hope that the headline announcements around reduction in National Insurance for self-employed and employed people will boost disposable income, confidence and spending.

"The reductions are material on the face of it, adding up to a huge sum across the whole workforce.

"If everything else was the same it would mean that people would have more money to spend, which would help to drive the economy.

"However, because tax bands have been frozen, the tax burden overall is increasing, so this may turn out to be more smoke and mirrors, and unlikely to have a significant impact on consumer spending."

Cllr Shaun Davies, Chair of the Local Government Association, added: “The evidence of the financial strain on councils has been growing and it is hugely disappointing that today's Autumn Statement has failed to provide funding needed to protect the services the people in our communities rely on every day."