HYTHE Ferry will stop running on New Year's Eve after being hit by rising costs and falling passenger numbers.

Blue Funnel Ferries says the service, which runs between Hythe Pier and Town Quay in Southampton, is no longer financially viable.

Bosses are hoping to save the vital transport link by selling the business and its assets to another operator.

The ferry, which is used by shoppers, commuters, and Saints fans attending games at St Mary's Stadium, is thought to employ between 20 and 30 people.

Daily Echo: Blue Funnel Ferries has announced that the Hythe Ferry will stop running on New Year's EveBlue Funnel Ferries has announced that the Hythe Ferry will stop running on New Year's Eve (Image: Newsquest.)

Owner Lee Rayment said: "Hythe Ferry has reached a position whereby it is no longer financially viable to continue trading as a business, despite best efforts, cutbacks & voluntary assistance.

"We are now running at a loss, which cannot be sustained during the historically quiet winter months.

"Future necessary outlays are now unachievable. Therefore, ideally, the hope would be to sell the business and assets to keep the ferry operating. We cannot continue to incur supplier/payroll debts when the business is not capable of covering those overheads.

"Consequently, I have no alternative but to cease trading as of New Year's Eve 2022."

New Forest East MP Julian Lewis said: "This is very sad news, given the valued role of the ferry and the strenuous efforts of Lee Rayment and his team to make and keep it viable."

District councillor David Harrison described the announcement as "very sad news".

Daily Echo: The entrance to Hythe PierThe entrance to Hythe Pier (Image: Newsquest.)

Several people have taken to social media to voice their shock and dismay at the news that the service will stop running in just over a week's time.

One person posting a comment on the ferry's Facebook page said: "This is a sad outcome.

"It is a shame as you have worked so hard to keep it viable. Hopefully, a buyer can be found. Good luck to you in the future."

In 2020 the future of the service was hit by the Covid crisis, with lockdowns resulting in a dramatic reduction in the number of passengers.

Last year campaigners won their battle to prevent the ferry being sunk by the economic impact of the pandemic.

A Crowdfunding initiative launched by Hythe resident Ashleigh Mutimear raised more than £37,000. That, together with cash donated by local authorities, lifted the threat of closure.

The ferry used to be run by White Horse Ferries.

In 2016 the company warned the service was "unlikely" to continue operating. A few months later Blue Funnel Ferries stepped into the breach, buying the boat and the pier.

Speaking at the time Mr Rayment said: "My main aim is to revitalise the service by improving reliability and passenger comfort.

"I have the experience and the know-how, and hope the planned changes will convince more people to use it."

Today Hythe Pier Heritage Association (HPHA) said it was "very sad" to hear that the ferry service would end on New Year’s Eve.

A spokesperson said: "We sincerely hope a way can be found to ensure there is still a future for the historic ferry link between Hythe and Southampton.

"HPHA will continue with all its existing projects.

"These include the repair and replacement of the train track, the restoration of the one hundred-year-old train and carriages, and repairs to the pier buildings.

"We will continue to work towards our aim of restoring and redeveloping Hythe Pier, its associated buildings and the unique century-old pier railway for the benefit of the community of Hythe."

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