Fears raised over possible sale of port amid council shake-up

At a recent Portsmouth City Council cabinet meeting, councillors reviewed the latest budget and three-year forecast for Portico Shipping Limited - the council-owned company responsible for cargo handling at the port.

Chris Ward, the council’s director of finance and resources, said the company’s updated business plan shows “an improving position".

In 2025/26, Portico is forecasting nearly £23m in income but expects a £2.1m loss. Losses are set to peak at £2.9m in 2026/27 before falling to £2m in 2027/28, as income climbs to over £25m. These losses are largely due to significant upfront investments, more than £7.3m in loans from the council and a £4.8m government grant.

Portico’s managing director, Steve Williams MBE, told councillors the company’s logistics arm has “outgrown” the port, with revenue growing by about £5m in the last two years. He said the company now needs four more acres to meet rising demand and is scouting sites between Portsmouth and Southampton.

But looming in the background is the government’s LGR plan, which could see Portsmouth City Council dissolved and replaced by a larger unitary authority covering Portsmouth, Gosport, Fareham and Havant.

Council leader Steve Pitt warned that such a merger could burden the new authority with Hampshire County Council’s financial problems - the county is forecast to face a £281m shortfall by 2028/29.

He feared this could result in the new authority selling off assets, such as the port, as well as affecting service provision.

He wrote to the government recently about the revenue gap only to be told “to consume our own smoke – that it’s our problem to solve.”

“If we inherit an enormous structural deficit on day one, all of the discretionary services across Portsmouth, Fareham, Gosport and Havant will have to be cut.

"If the government does not step in, we will not be able to afford to deliver statutory services on day one of the new authority.”