Construction costs to regenerate Armada Way have been significantly reduced and will be largely funded by substantial grants and external resources, reducing the direct cost of the scheme to local taxpayers. 

The cost of the construction is now £29.89 million. This will be paid for by external Government grants (Transforming Cities Fund and the Future High Streets Fund), contributions from developers, funding from the Climate Emergency Investment Fund, Council borrowing and receipts from the sale of surplus property.

This means that the direct cost to local taxpayers for the construction of the Armada Way scheme is just £11.2 million, just over 38 per cent of the overall construction costs. Sixty-two per cent of the scheme will be funded from sources other than the City Council, including the sale of surplus property.

Councillor Tudor Evans, Leader of Plymouth City Council, said: "We always said that the overall costs published earlier in the year were a ballpark estimate and included the enabling works. We had to plan for worst case scenario.

"Now that we have completed our exploratory trial pits, we have clarity on the scope of the works needed, enabling us to have detailed conversations with the contractor.  

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"Let's be clear, creating a city centre that we all can be proud of cannot be done on the cheap. Construction costs have gone up exponentially in recent years – the cost of materials alone has more than doubled.  

"We are trying to create something really special that will be a real focal point for our city. Plymouth deserves the best as we embark on a new chapter for our unique city centre."

In February, following one of the largest listening exercises ever carried out by the Council, and a cross-party scrutiny review, the Council confirmed the new design for Armada Way.   

Since then, further detailed work has been carried out to establish the final cost of construction. This included digging exploratory trial pits on Armada Way to get a more accurate picture of what is beneath the surface and detailed cost review sessions with our contractors.  

There are a few slight alterations to the designs which includes delaying redevelopment of the piazza at this stage, as there are other improvement works planned in the area such as Royal Parade.

Some sections of new paving will be put on hold until after redevelopment work on a small number of buildings on Armada Way, alongside the installation of piping for an underground heating network.  

We have also made some changes to the planned solar panel installation, which will contribute to powering the urban drainage system (SuDs). Solar panels will still be installed at the Place de Brest, but not adjacent to the existing toilets.

This SuDs system is vital for the future of the city centre. It will divert up to 77 per cent of the surface water away from our pre-war sewer system, which discharges wastewater into the Sound. This new drainage system will not only provide a sustainable way to water the trees and plants in the city centre, it will also enable us to build more much needed homes in the area.

Cabinet will consider the costs of the scheme at its meeting on 9 September and if agreed, contracts will be signed with the contractor and work will start in October.  

If Cabinet agree the funding, further information will follow about the timetable for the work as well as measures to mitigate the impact of construction work.