Families across England are bracing for council tax bills to surpass £2,000 for the first time in April after chancellor Jeremy Hunt announced tax rises in his Autumn Budget.

Hunt has outlined a package containing “difficult decisions” that amounts to a “substantial tax increase” in an autumn statement he said would put the UK on a “path to stability”.

The package represents a significant change from his predecessor Kwasi Kwarteng’s unfunded tax cuts in the disastrous mini-budget less than two months, ago which was widely blamed for having spooked the markets.

Among income tax and vehicle tax hikes, Hunt also announced the government will relax the cap on local council tax set to impact families across England.

The Autumn Budget outlined plans to hike caps on local council tax without a referendum from 3% to 5%.

Although not specifically mentioned in his statement, Jeremy Hunt did allude to “flexibilities”.

Average Band D council tax bills are already at £1,966, up £500 from 2010, while exact decision will be made in the new year it means average Band D bills are likely to surpass the £2,000 mark.

Local governments have already warned a council tax hike of “well over 10%” would be needed to fill current funding gaps via the Local Government Association (LGA).

Ahead of Hunt’s statement, the LGA warned relying on council tax alone would be “neither sustainable nor desirable given the current cost of living crisis”.

An LGA spokesperson said: “While council tax is an important funding stream, it has never been the solution to the long-term pressures facing councils.”