IT'S a ferry link that has operated between Hythe and Southampton since AD400.

Each year more than 400,000 passengers make the 20-minute journey that connects the edge of the New Forest with the city.

Now the Daily Echo is joining the fight to keep the vital service afloat after its future was threatened by a planned 740 per cent hike in its rates.

White Horse Ferries Ltd has warned that the route could be axed within months if the crippling rise is imposed.

The proposed staggering increase has been condemned by residents, politicians and shopkeepers.

Today the Daily Echo can reveal that pressure from campaigners is already paying off.

Valuation chiefs have vowed to review the rates rise after we highlighted fears that the increase could drive the service out of business.

New Forest East MP Julian Lewis said: "Once again the Daily Echo has shown itself to be a champion of the needs of our community. The indications are that this is already beginning to bear fruit. It's good that the valuation officers are showing signs of flexibility. I'm sure they will have realised the strength and depth of feeling that the Echo has articulated so well."

The closure of the ferry would be a devastating blow to Hythe shops, many of which rely on passing trade generated by the service.

Nik Nikandrou, chairman of Hythe Business Partnership, said: "People come to Hythe from Southampton and it would definitely affect trade if the ferry service ceased."

Village shops benefit from the influx of Forest and Waterside residents who use the ferry.

Politicians campaigning to save the service include Hythe county councillor Brian Dash, who has contacted valuation officers and obtained a written undertaking that the massive increase will be reconsidered.

Cllr Dash said: "The ferry is a vital lifeline to Hythe and has a huge impact on the local economy. I'm determined that the threat to business is removed.

The pledge to review the rate rise is made in a letter to Cllr Dash from group valuation officer David Russell-Smith.

He says he has already written to White Horse Ferries and asked the firm to supply information about its finances, including operating costs.

His letter adds: "I am more than happy to reconsider the valuation in the light of the full facts."

The threat to the service emerged last week, when it was revealed that the Valuation Office Agency wanted to increase the company's annual business rates bill from £1,459.20 to £12,257.25 following a review.

Richard Lay, a director of White Horse Ferries, said the agency had agreed to appoint a specialist to investigate the issue.

He added: "I'm hoping they will realise what a mistake they have made."

FACTFILE:

Ferries have operated between Hythe and Southampton since AD400.

The name Hythe comes from the Saxon word "Hithe", which means good landing place.

Ferries operate from the end of the 2,100ft Hythe Pier, the seventh longest pier in the country.

It boasts the oldest pier train in the world - three battery-driven carriages that take passengers to and from the boats.

White Horse Ferries took over the service in January 1994 after the previous operator went into liquidation.

The company operates two boats, Great Expectations and Hotspur IV, and employs 27 people.

In November 2003 a 681-ton dredger crashed into the pier, causing £300,000 of damage. Skipper Andrew Bartlett was later jailed for eight months after he admitted being in charge of a ship while drunk.