COUNCIL chiefs look likely to hold on to a Southampton business park rather than cash in on the premises to the tune of £2.

5m.

A decision next week will determine whether Solent Business Centre, based in Millbrook, will operate as usual for the next three years or be sold.

Members will also decide whether management of the 98-unit centre should be taken over by Capita as part of an historic £290m deal that sees council services outsourced to the professional services giant.

The centre, which provides cheap office space for start-up companies, is today home to 87 businesses employing around 110 people.

Councillors are being advised to reject a sale at a Cabinet meeting on Monday, September 3 because of a shortage of budget business space in the city.

The man in charge of the city's economic development said keeping hold of the property was vital for fledgling businesses.

Cllr Royston Smith, pictured, said: "We need these start-up units otherwise businesses would have to go elsewhere.

They cost up to three times as much in other areas.

"This recommendation underlines our commitment to startup companies and economic development in Southampton.

Keeping hold of the facility, Cllr Smith added, would swell council coffers by more than £217,000 a year.

A council report added: "The closure of the Solent Business Centre would therefore have a severe effect on the current tenants and the sustainability of businesses located there as there is insufficient easy in easy out' premises to accommodate their needs."