HAMPSHIRE today woke up counting the cost of the controversial decision to kick plans for a new £600 million super port into touch.

Less than 24 hours after the government put the boot into the port proposal at Dibden Bay business leaders were packing their briefcases and threatening to quit Southampton.

However, homeowners near the proposed development were celebrating after news that house prices in their community are to soar.

It is understood that at least three major firms, employing hundreds of staff, are already considering pulling out of the city.

Other firms are reported to be turning their backs on Southampton port urging importers to take their goods to rival port Felixstowe.

Political leaders and the city's two Labour MPs are also counting the cost to the region's economy of the Department of Transport decision to reject the plans by Southampton port operator ABP for the new six-berth terminal on Southampton Water which would have created up to 3,000 new jobs.

They are now pinning their hopes of securing £40 million funding to transform ageing rail links from the south coast to the Midlands to transport all the freight coming into Southampton that the port may now not have the capacity to handle.