A SOUTHAMPTON MP has attacked a proposed hike in taxes for ships docking at the port as a threat to the city’s economic prosperity.

Port bosses are warning that major shipping lines could switch to cheaper foreign rivals under government proposal to increase taxes for the largest container ships by as much as 67 per cent each time they dock. Almost all of Southampton’s cruise industry would also be liable for the full increase.

Romsey and Southampton north MP Sandra Gidley said: “It’s ridiculous. This is a global game now. If rates are too high people will go to ports in other countries.”

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And she urged other city MPs to stick up for Southampton.

The city’s transport boss Councillor Matt Dean said the consequences could be “mega”, with implications for the city’s haulage firms and the wider economy.

“It’s an outrageous attack on the port in Southampton. It shows there has been no proper consultation with or understanding of the industry.”

The plans come on the back of changes to the way port rates are collected that has landed 25 Southampton port firms with a backdated tax bill of £3.75m, while the downturn has seen a drop in business. But ministers insist the rises in light dues are needed to plug a massive shortfall in the fund that pays for the upkeep of lighthouses, beacons, bouys and sea marks in the UK and Ireland.

They claim the changes would have “no significant impact on shipping patterns” as the taxes account for less than one per cent of the costs for a average shipping company.

The Department for Transport is consulting on four options but prefers the one that raises the most cash.

It wants to increase light dues from 35p to 41p per net tonne and raise the cap on which the taxes are payable from 35,0000 to 50,000 tonnes. Ship owners would have to pay the monthly tax nine times a year instead of seven.

Itchen MP and skills secretary John Denham said he could not comment on the consultation as he was a government minister but he would pass on industry concerns.

Mrs Gidley hit back: “We are talking about the economic prosperity of the city. That should be something the local MP has a view on.”