Council set to subsidise new fleet of Plymouth Citybus electric buses

Authority wants to pay towards £28.3m cost

Plymouth could have 50 new electric buses costing £28.3m - if the council can help pay for them. Plymouth Citybus, part of the huge Go Ahead Group, wants to buy the vehicles but is dependent on a subsidy of £12.3m from Plymouth City Council.

The council has asked the Government for advice about the proposed deal and expects to receive a report later this month. The new zero emission buses (ZEBs) would replace 50 out-of-date double-deckers and be used in Plymouth and the Rame Peninsula.

Last month, the Government’s Subsidy Advice Unit (SAU) agreed to a request from the council to provide a report which will look at whether the proposed subsidy to Citybus meets certain requirements. The report is due to be published on October 23.

The council has asked the SAU about a proposal to subsidise the cost of the new buses and charging infrastructure because it will reduce carbon emissions and improve air quality. The new double-deckers are intended to replace 33 Euro IV diesel buses and 17 retrofitted Euro V buses, part of a Citybus fleet of more than 300 vehicles.

But if Citybus doesn’t get the subsidy the buses can’t be bought. A document on the Government’s website said: “Without the proposed subsidy the project would not progress and the significant decarbonisation of bus transport and air quality benefits for Plymouth and the Rame Peninsula would not be realised.”

The subsidy would amount to 43% of the total cost of the buses, with the rest met by Citybus or its parent company. The subsidy will mostly come from Government cash: the Department for Transport’s Zero Emission Bus Regional Area (Zebra) 2 Fund will provide 84%, with the council stumping up 6% and Cornwall Council providing 10%.

The DfT’s share includes a £800,000 contingency fund, which will only be paid if “quantified” risks materialise, but if they don’t the proposed subsidy will be just £11.5m. The subsidy is also dependent on Go Ahead or Citybus paying for any extra costs, allowing the chargers to be used by community groups, and ensuring the new buses operate on agreed routes for at least five years.

Other bus operators in the Plymouth Enhanced Bus Partnership were offered the chance to join with the council and apply for the Zebra 2 funding, but only Citybus came forward. Other bus operators endorsed the application, however, because of its “wider value to the bus partnership”.

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