THE potential prosperity was enormous and the stakes were high. Southampton had been on the verge of one of the biggest economic boosts in its history.

But yesterday's damning decision not to give the Dibden Bay development the go-ahead has left ABP's dreams in tatters.

Southampton's Labour MPs John Denham and Alan Whitehead were united in their support for the project and the millions of pounds it would bring for their home city.

The announcement by their own government that the development would not go ahead came as a crushing blow and pulled the rug from beneath their feet.

It has even left some questioning the safety of their seats at the next election.

But they maintained last night that while the scheme may be dead, a sweetener in the form of a £40m railway upgrade for the city's freight link was on the cards.

However, it remains to be seen if the city's voters, disenchanted at the decision, may in turn consider rejecting them at the next General Election like their party rejected the Dibden terminal.

Councillor Royston Smith, deputy leader of the city council's Tory party, said the verdict could impact on the pair's standing within the city.

He said: "I think you've got to wonder why the government has done this, especially as they suggest they want to create meaningful jobs, which this would have done.

"The Labour government is effectively exporting jobs to Europe with this decision. It seems as if Southampton has been sold down the river.

"I think this will obviously impact on both the MPs and the former council Labour administration as they all backed it.

"It's their government that has gone against them.

"Obviously we supported it and it isn't a surprise the government went against something we wanted.

"But this is very much something Mr Denham and Mr Whitehead supported. This comes in the wake of the government diverting money and grants away from the south to the north and is another blow to them.

"This will make their positions less sure than they were.

"It will have to be seen whether this will be a defining issue at the election.

"I think the city council as a whole was united in wanting Dibden Bay to be given the go-ahead.

"Everyone will disappointed that it isn't going to happen and this will impact on jobs and the economy."

Mr Whitehead, Southampton Test MP, spoke of his disappointment at the verdict but said he was "reasonably encouraged" by noises from the Department of Transport.

In a letter to the campaigning Labour backbencher, rail minister Kim Howells said upgrading the Southampton West Midlands freight link was a "high priority".

Mr Whitehead said: "Although £40m sounds a lot, frankly it is a couple of sneezes compared to some rail projects in Britain."

The money would be used to realign some tracks and bridges on the railway.

This would allow the line to carry more new-style 9ft 6in cargo containers, leading to more container ships docking at Southampton which could in turn lead to more jobs.

John Denham, MP for Southampton Itchen, said: "The decision by the government over Dibden Bay makes it even more important Southampton's port can function well in the future as a UK hub port. Any failure to upgrade rail links from Southampton puts that under threat.

Meetings between the MP and ministers are set to take place over the next few weeks.

Mr Whitehead denied they could have done more to influence the government's ministers over Dibden Bay.

He said: "The proposals by ABP to mitigate the environmental impact of a new container port were not sufficient to overcome concerns. This is why the public inquiry inspector turned the scheme down.

"I think it would have been very difficult for a minister to oppose such clear recommendations and reasoning and say, 'Right, we are going to oppose the decision.'

They both maintained there would not be a political backlash against Labour in the next General Election over Dibden Bay.

Mr Denham said: "I think the issue extended beyond party politics. We were campaigning as city MPs.

"For instance, the Liberal Democrat city council supported the project, it was not purely a Labour issue.

Mr Whitehead insisted: "I think it is right people in the city look to their MPs to make sure they do their best for the city. I think on this occasion we did do our best."

City council Labour leader Councillor June Bridle described the decision as a "hammer blow" for Southampton.

But she refused to be drawn on the fall-out it could create for the Labour party in the city.

She told the Daily Echo: "It's a hammer blow. One of the things that was going to be a huge plus for Southampton in the future was the Dibden Bay development.

"This will really knock things sideways.

"Only recently the Daily Echo reported how Portsmouth had overtaken Southampton in terms of wealth per person and things like this all add up.

"I do think we have to be very worried about it and have to be very conscious of what has happened.

"Like all the political parties in Southampton, we were very keen to see this come off and we fought long and hard for it.

"It's very disappointing. We were very hopeful.

"I will be looking at the report to see the rationale behind it."

The Lib Dem's city council leader Councillor Adrian Vinson spoke of his disappointment but claimed Southampton's future was postive.

"The future of the city does depend on more than one facet and though clearly the port is a crucial element, and the Dibden decision is one we will have to wrestle with, there are many other exciting developments happening.

"There are things like the Woolston development on the Vosper site and the city centre project, which will reinforce our position as one of the leading centres for shopping and leisure.

"Our eggs are not all in one basket but it is important as many of those eggs hatch."