"Southampton is going bust": New Portsmouth Lord Mayor takes aim at city rivals as port success hailed
.jpg?width=96&crop=1:1,smart)
The new Lord Mayor of Portsmouth has shot a broadside at Southampton and said its council is close to going bust.
Gerald Vernon-Jackson, a Liberal Democrat politician and former leader of Portsmouth City Council, said the city has a strong financial edge over its rival. He singled out Portsmouth International Port as an economic stabiliser, as he welcomed the luxury cruise ship SH Diana into the harbour on her first call into the city today (May 21).
The Lord Mayor said the council-owned municipal port brings in roughly £8m of profit a year, which goes to its shareholders - the people of Portsmouth. He added that alongside some debt repayments, most of the money flows into vital services used on a day-to-day basis. Each cruise call generates approximately £1.5m in port fees and wider city spending through tourism.
“That brings in millions of pounds to support services which other councils can’t do,” the Lord Mayor told The News. “That’s why Portsmouth isn’t going bust as a council, while Southampton City Council looks as if it’s going to go bust in the next few months.
“We’re in a very different financial position, not just because of the port, but because of the long term financial decisions the council has taken under all parties. We’ve done it in a much more entrepreneurial way, but working in ways with all parties in areas where we’re experts, like the port. We know how to run a port, so we do it and we run it profitably.”
The Lord Mayor added that different parts of the city benefit every time a cruise ship calls into the city, from the crew shopping in Commercial Road to tourists visiting Portsmouth Historic Dockyard and other attractions. A record 94 vessels, primarily smaller ships from luxury brands, are due to call into Portsmouth International Port this year.
Southampton City Council had to have its emergency financial support extended earlier this year, according to the Local Democracy Reporting Service. The local authority has been given permission to use capital resources through borrowing to cover revenue costs. It was forced to halt a major flood defence scheme this month due to significant financial constraints.
The local authority told the BBC it remained committed to the River Itchen Flood Alleviation Scheme (RIFAS) despite the decision. The project has an estimated cost of £96.7m.