CHANCELLOR George Osborne insisted that Southampton is a "great city" with a promising future during a visit to Hampshire.

Mr Osborne visited Centenary Quay to discuss the changes brought about by a reform in stamp duty announced in his autumn statement.

New rates will reduce stamp duty for 98 per cent of buyers and Mr Osborne said this would benefit the construction of homes.

Mr Osborne said: "Southampton is a great city with a lot of exciting things happening here.

"We are seeing a British economy that is going up as fast as anywhere in the world.

"It's great for the people of Southampton who are making their first move onto the housing ladder."

The chancellor denied that he was visiting the city to boost the Conservative Party's chances of victory in next year's general election and said that stretched resources in the NHS would begin to improve.

Daily Echo:

George Osborne with Steve Bennett (centre) and Cllr Royston Smith

The chancellor also paid a visit to The Courtyard in Botley to discuss pension bonds reform.

He chatted to elderly residents about how they would stand to benefit from the new measures.

Joe Appleby, owner of The Courtyard, said: "It's very surreal having him here."