New report highlights Naval Base closure concerns
From Portsmouth City Council website...
An independent report, commissioned jointly by Portsmouth City Council and the South East England Development Agency (SEEDA), has provided compelling new evidence of the devastating impact that closing Portsmouth naval base would have on the South East's economy.
The Ministry of Defence is reviewing the future of Britain's three main naval bases, Portsmouth, Devonport (Plymouth) and Clyde/Faslane, and is considering the possible closure or minimisation of either Portsmouth or Devonport.
The report by the University of Portsmouth, shows that the base and associated defence related industries and jobs are worth ?680 million to the region's economy every year. Other key findings are:
- the naval base, and its associated industries, supports nearly 35,000 jobs in south Hampshire, of which 13,300 are service and 21,600 civilian jobs
- these jobs account for 8% of all jobs in the sub-region and for the employment of 6% of people in the area
- importantly, 15% of residents in Gosport, 10% in Portsmouth and 8% of people in Fareham are in jobs which are reliant upon naval activity in and around the Portsmouth base Portsmouth Naval Base is at the heart of the local defence 'supply chain' with many small specialist industries working directly or indirectly for the base or one of the three large contracting companies based inside - VT Shipbuilding, Fleet Support Ltd. (FSL) and BAe Systems.
Portsmouth Naval Base is a Centre of Excellence from design concept and shipbuilding to worldwide support, repair and disposal of ships. It has built up training excellence around it which it shares with related suppliers.
Additionally, Portsmouth and south Hampshire is home to one of the UK's leading high-tech super clusters spanning Electronics, Aerospace & Defence, and IT. The naval base is a key catalyst of this activity with research and development from internationally renowned companies providing the Royal Navy's military advantage, and has many of the skilled people and facilities needed to continue to deliver a world-class navy.
The new report, by the University's Centre for Local and Regional Economic Analysis at the Portsmouth Business School, updates a previous study of 2005 and seeks to help the MOD to understand the role of the naval base in the local economy.
The report says that minimisation of Portsmouth would lead to many servicemen and women and civilians currently living in the region relocating to the West Country. Under current assumptions, there could be up to 21,600 direct and indirect job losses as a result of the closure of the base, comprising 10,300 service personnel and 11,300 civilian jobs. No fewer than 13,600 of those jobs would be specifically lost to the local authority areas of Portsmouth, Havant, Fareham and Gosport. There would also be a hugely negative affect on both tourism and firms in the "defence supply chain."
Both Portsmouth City Council and SEEDA are very concerned about the effects of possible closure of the naval base on surrounding communities. Although the South East is a prosperous region overall, this is not the case throughout south Hampshire, and particularly in some parts of Gosport and Portsmouth, where many areas have unemployment rates significantly above the national or regional average and average wages are relatively low compared to the South East as a whole.
If Portsmouth's capacity grows, it will continue to develop as the Centre of Excellence for the Navy's surface fleet, with the Navy benefiting from more affordable and capable ships. In addition, UK plc will continue to gain from the technological and export spin-off opportunities that the industries around Portsmouth create.
You can find a copy of the report and the executive summary below.
Associated documents:
Socio-economic impact assessment of Portsmouth Naval Base 
