Councillor Briars-Delve (Cabinet Member for Environment and Climate Change), supported by Amanda Ratsey (Head of Economy & Investment) and Richard Stevens (Managing Director, Plymouth Citybus), introduced the item and highlighted:

 

a)    Sustainable growth was generally considered as growth that did not negatively impact the environment, but promoted social inclusion and wellbeing and helped to drive a green industrial economic revolution;

b)    When considering economic growth, it was important to increase the green and blue skills within the city and consider decarbonisation, waste reduction, boosting nature recovery;

c)    To deliver economic growth, six elements had been identified through which resources would flow:

                      i.        Attracting new investment into the city in green jobs, specifically around new and emerging energy production and storage;

                     ii.        Business support, helping businesses adapt to climate change and move to net zero emission;

                    iii.        Decarbonise the current economy, including retrofitting the existing commercial building stock and opportunities;

                    iv.        Restorative actions which improved sustainability;

                     v.        Commitment to supporting sustainable travel and living, including public transport provision;

                    vi.        Skills and Workforce Development needs for a more sustainable economy;

d)    Plymouth had secured funding from central government for electric buses, receiving the largest award nationally and committing to a £20 million investment;

                      i.        Electric buses were operational, quieter and cleaner but still faced traffic and capacity challenges;

                     ii.        The Citybus depot in Milehouse was a Net Zero facility;

                    iii.        If the funding was available, the depot was in a position to be able to run an entirely decarbonised fleet of buses;

                    iv.        Plymouth was at the leading edge of the decarbonisation of public transport;

 

e)    Floating offshore wind development through the Celtic Array Crown Estate project included the potential for 7000 new jobs in the South West;

 

f)     Focus areas included marine autonomy, cybersecurity, surveying and training for high value roles;

 

g)    Port infrastructure investment included installation of shore power with £5 million investment supported by freeport funding, enhancing connectivity through Brittany Ferries to France and Spain;

 

h)    Plymouth was announced as the National Centre for Marine Autonomy, attracting businesses working on clean propulsion technologies such as hydrogen, hybrid battery systems and sail drive;

 

i)     Links to Freeport hydrogen power development was highlighted as important for inward investment;

 

j)     Sustainability priorities included investment in green jobs aligned with the corporate plan, supporting businesses to adapt to climate change, restoring the natural environment through initiatives like the National Marine Park and Community Forest, promoting clean transport and sustainable living, and developing skills for young people and career movers transitioning to clean technologies;

 

k)    Next steps included quarterly pillar meetings to strengthen the evidence base, commissioning further research on emerging opportunities such as battery technology, continuing monitoring of economic strategy progress using Power BI with a 75% response rate in the first round, and reviewing workstreams to reflect rapid innovation in sectors like marine autonomy and alternative propulsion.

 

In response to questions, supported by David Draffan (Service Director for Economic Development), Mike Page (Growth Board and Funding Manager), Lauren Paton (Economic Development Officer), the following was discussed:

 

l)     The cost of an electric bus was approximately double that of a diesel bus for the initial purchase, with a Euro 6 diesel bus costing around £286,000 and an electric bus just under £500,000;

                      i.        Lifetime costs for electric buses were higher due to battery replacements every three to five years, typically closer to three years, at about £30,000 each, adding around £150,000 over the vehicle’s life;

                     ii.        Running costs were lower for electric buses because they have fewer parts, less wear and tear, reduced maintenance cycles, and no oil usage;

                    iii.        Fuel costs had improved for electric buses as energy prices have fallen, giving a slight cost advantage per mile, though it was still too early to confirm if overall lifetime costs would be lower;

                    iv.        The Council did not invest over £30 million in the buses; its contribution was £750,000 from the Community Infrastructure Levy funds, which helped unlock over £30 million of external investment from the bus company and national government;

                     v.        The project was considered essential for improving air quality, introducing modern buses, and supporting sustainability goals;

 

                    vi.        The monitoring of air quality had been ongoing. Monitoring occurred at locations along busy transport routes such as Royal Parade, Mutley Plain and Devonport Road, which previously had high pollutant levels due to heavy traffic and diesel buses;

 

                  vii.        Over multiple years, the city had shown sustained improvement, and in 2025 the Air Quality Management Area designation was revoked as levels consistently fell below thresholds. While this improvement was not solely due to the electric fleet, it reflected overall progress;

                 viii.        An air quality strategy was in place, and published data was available through Department for Environment, Food and Rural Affairs (DEFRA) and the Environment Agency;

                   ix.        All 50 electric buses were currently in service, and an additional nine buses would be introduced by April through extra funding from the Department for Transport, bringing the total to 59;

 

                    x.        No buses had had to stop due to charging issues. Battery management ensured a lower limit of 10%, providing around 21 miles of range based on an average of 210 miles per charge. Buses were successfully operating across the Torpoint Ferry, marking the first electric vehicles to do so;

 

                   xi.        Electric buses did not carry petrol or diesel as backup power. They ran entirely on battery technology, taking about seven hours for a full charge and 40 minutes to reach 80%, making incidental charging part of scheduling;

                  xii.        Additional benefits included improved acceleration and deceleration, positive driver feedback, and the inclusion of two wheelchair spaces per double-decker bus for the first time in the city, enabled by better layout and space utilisation;

                 xiii.        Plans were being explored to offer charging facilities to other organisations when not in use;

m)  A large conference had been held in Summer 2025 with around 120 businesses to showcase opportunities;

                      i.        Floating offshore wind was still in its early stages, with an estimated lead time of eight to 10 years before full implementation, which was why defence projects were the subject of more communication at the time, however, there was definite interest and opportunity in offshore wind;

                     ii.        Applying autonomy in hydrography surveying could speed up consenting periods by up to two years, as autonomous systems could operate continuously and reduce risks to personnel;

                    iii.        There were still regulatory and consenting challenges, but the Ministry of Defence (MOD) was keen to collaborate with private sector investment to accelerate innovation. Both sectors shared the same level of energy and ambition, but offshore wind operated on a longer timeframe compared to defence;

n)    The economic strategy had 55 live projects, of which 22 fell under Team Plymouth. Team Plymouth accelerated areas of the economy, particularly those linked to defence, but other projects such as the heat network represented significant green investment opportunities outside of Team Plymouth;

                      i.        The heat network was a £400 million project that would create hundreds of green jobs and support small businesses. Team Plymouth was important, but it was not the only focus for economic growth;

                     ii.        Defining green jobs could be challenging, but the UK Office for National Statistics provided a standardised definition using industry codes. In 2023, 46% of UK full-time jobs were classified as green jobs, and Plymouth performs well with 45 percent of full-time employees in low-emitting industries;

o)    Monitoring currently focused on progress rather than impact, and data analysis would become more central as the pillar developed. The economic strategy included 12 long-term aspirations and would undergo annual reviews, with a full review every three years;

p)    The change of pace meant some opportunities, such as electric buses, were not included initially and would need to be considered in future updates;

q)    Sustainable growth was not only about specific job roles but also about how businesses and residents operated sustainably. A job may not be classed as sustainable, but if it existed within a sustainable business model, it contributed. For example, electric buses represented sustainable transport, only if the wider environment and infrastructure supported them;

r)    The focus was on creating systems and practices that enabled sustainability rather than isolated actions;

s)     There were several ways to link sustainability to the proposed city centre growth of 10,000 homes. The city had significant housing targets to meet, and concentrating housing growth in the city centre provided sustainability benefits. For example, it reduced pressure on suburban green spaces by delivering homes on existing brownfield sites;

                      i.        From a decarbonisation perspective, more people living in the city centre would have access to bus routes, bike stands, and businesses within walking distance, reducing the need for car ownership;

                     ii.        Another key aspect was heat network connectivity, which was already planned for developments such as Millbay and the new version of Millbay Way. These properties would be ready to connect to the most affordable low carbon heating solution in the city, the heat network;

                    iii.        As businesses changed in the city centre, there would be continued efforts to encourage sustainable practices, and this would remain central to planning for city centre growth;

t)     It was not possible to fully contextualise the spillover from defence spending into the commercial space. However, there were clear signs of investment growth;

u)    Some businesses were focused on marine autonomy and defence, while others were working in hydrography and surveying, but also exploring defence opportunities;

v)    The mix of businesses demonstrated rapid development and innovation;

w)   The global value of marine autonomy was projected to be £103 billion, and Plymouth was one of three places in the world operating at this cutting edge;

x)    Attracting high-value jobs and businesses to Plymouth would help escalate behaviour change towards green and blue values. The city’s brand strategy emphasised sustainability, not only through its natural assets such the National Marine Park and Dartmoor but also by promoting Plymouth as a network passionate about the environment. This approach would attract people with the values and education needed for sustainable growth and create opportunities for new networks and wider behaviour change;

y)    The business community was eager to adapt and provide services and products to defence companies and organisations. The challenge was aligning language and expectations between sectors to create solutions quickly. The emerging frontier required agility, and the business community believes there would be significant spillover into sustainable areas;

z)    Historical examples showed how defence technology had transitioned into civilian applications, such as ball bearings and hydraulic pipes originally developed for nuclear engineering now used in Formula One and aerospace;

 

                      i.        Defence procurement was also changing, moving from long-term projects to rapid innovation cycles, creating opportunities for small, agile businesses. These innovations were expected to flow into civilian sectors like transport and energy storage over time;

aa)  Plymouth was preparing to support innovation and growth by integrating artificial intelligence into data analysis and monitoring to respond quickly to opportunities;

bb) Local government provided the platform for academia and business to collaborate;

cc)  The city aimed to act as a petri dish for innovation, enabling private sector growth and ensuring Plymouth remained at the forefront of technological and sustainable development;

dd) Retrofitting offered many opportunities economically, for health, and for reducing energy bills. The Net Zero team were involved in a range of programmes including retrofitting the Council’s corporate and commercial estate, introducing fabric-first heat retention approaches, and installing heat pumps to transition away from gas boilers;

                      i.        Several million pounds of improvements had been delivered through social housing decarbonisation funds in partnership with Plymouth Community Homes and Livewell;

                     ii.        Additional investment had been announced for the Warm Homes Local Grant;

                    iii.        The Council worked closely with Plymouth Energy Community to provide energy advice and support, including door-to-door engagement to increase uptake of grants such as the Homes Upgrade Grant, which offered up to £20,000 per home for retrofitting. These efforts were essential to the programme and would continue to be prioritised;

ee) The single red rating noted in the report reflected progress rather than performance. It likely indicated that the project had not started yet, which the monitoring system captured in its assessment, more information would be provided ACTION;

 

ff)    Officers would share an updated project list and findings following initial monitoring ACTION;

gg)  Officers would share updated statistics on air quality monitoring ACTION.

 

The Panel agreed to;

 

1. Note the report and the continued focus on Sustainable Growth as a key element of the Plymouth Economic Strategy.