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Long Term Future of Portsmouth Naval Base Secure

The Royal Navy currently operates in the UK from three naval bases - Portsmouth, Devonport and Faslane.  As part of a review of these bases in 2006/07 the MoD assessed size, role and capabilities.  The major options considered were either to retain all three (whilst making cost savings) or to "minimise" one naval base and transfer the bulk of its activities to the other facilities.  In the case of "minimising" Portsmouth this would have meant the closure of the base.

As a result Portsmouth City Council jointly commissioned with SEEDA an updated Socio-Economic Impact Assessment of Portsmouth Naval Base (original undertaken in 2005).  This independent study by the University of Portsmouth, showed that the base and associated defence related industries and jobs are worth £680 million to the region's economy every year. Other key findings were:

• 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 also 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.  It 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.

Portsmouth City Council also spearheaded the establishment of hte Portsmouth Naval Base Stakeholders' Group that was chaired by Sarah McCarthy-Fry MP.  Other members included senior representatives from a range of key partners such as other politicians from the region, VT Group, Fleet Support Ltd (FSL), the Navy, BAE and South East England Development Agency (SEEDA).

This Group lobbied on the strength of the economic argument to retain the base and produced a range of publicity material to raise the profile of the campaign e.g. Drumbeat newsletter (see internal links).  This activity included delegations visiting Government Ministers and the effective programme of fact based argument led ot the Ministerial announcement just before the Summer recess in 2007 that the "3 base option" would be pursued.

In 2008 a number of developments have reinforced the decision to retain Portsmouth Naval Base and will result in significant growth in work undertaken.  Therefore not only are jobs being safeguarded but new ones will be created.  These developments include the merger of VT Group and BAE shipbuilding operations to create BVT; the Government announcement that the two new aircraft supercarriers will be built (in part in the Naval Base) plus ultimately based in Portsmouth; and the MoD decision that Portsmouth will be home to day-to-day maintenance work on all warships in the future.  As a result this should secure the long-term future of the Portsmouth Naval Base.

Associated documents:

  Socio-economic impact assessment of Portsmouth Naval Base  (0.86 MB)
Executive summary of report  (0.18 MB)