The future of Hythe ferry is ‘bleak’ amid financial instability, fears Cllr Dave Hills

THE future of the historic Hythe ferry is looking “bleak” due to a lack of financial stability, a local councillor has said.

As reported in the A&T, the service, which connects Hythe and Southampton, has been out of action since last August after engineers rendered the boarding pontoon unsafe.

The Hythe and Southampton Ferry Company, which was set up in 2023 following Red Funnel’s purchase of the service, says it needs £250,000 for a new pontoon as the existing one cannot be repaired. A Crowdfunder has so far raised just £4,670.

Cllr Dave Hills, a member of Totton and Eling Town Council, says questions are now being raised over whether the firm can stay afloat.

Southampton, Isle of Wight and South of England Royal Mail Steam Packet Company (SIOW), the trading arm of Red Funnel, filed its accounts last week, six months later than expected, on a “going concern” basis, meaning its directors believe it can operate for the next 12 months.

However, the accounts included a “Material Uncertainty related to Going Concern” (MUGC) clause, which warns Red Funnel could face serious financial issues by 30th September due to a £40.1million debt.

Cllr Dave Hills told the A&T: “I'm concerned that the future of the iconic Hythe ferry service is looking bleak, given the apparent lack of financial stability at Red Funnel, and the failure to raise enough money to replace the damaged pontoon.

“Understandably, many questions are being raised about how much longer the Hythe [and Southampton] Ferry Company can stay afloat. But perhaps all is not lost – if Red Funnel cannot continue to support the service, could another operator step in?

“A dedicated water taxi service, using fuel-efficient boats and an app-based booking system could offer a flexible and sustainable alternative at a fraction of the cost of the existing service.

“If the schedule were expanded to include places like Portsmouth and Eling, revenue could be increased; but it will take vision and investment to ensure that this historic route doesn’t simply fade into the past.”

Documents submitted to Companies House show Hythe ferry was purchased by Red Funnel for £234,000.

The latest accounts for the Hythe and Southampton Ferry Company remain overdue, with the period ending December 2023 due to have been published by 27th March.

The day before, on 26th March, the firm made a registration of charge, which is security a company gives for a loan.

The Hythe and Southampton Ferry Company was repeatedly asked to comment, but failed to respond to the A&T.