An important military and naval location for over 400 years, and home to HMNB Devonport, the largest naval base in Western Europe, the city plays a critical role in supporting the UK's submarine fleet and national security infrastructure.

Strategic defence investment

The UK Government's Strategic Defence Review 2025 was a major catalyst for the growth we are starting to see now. The Review provided a high-level blueprint outlining how the UK armed forces must transform for 21^st century warfare, with a focus on the use of AI and autonomy.

The subsequent Defence Investment Plan, which was published on 30 June 2026, set out the funding strategy and specific budgets and capability programs, which included a £500 million commitment for Plymouth to continue the transformation of the UK Commando Forces.

Significantly, the Government’s flagship Project Royal Oak investment programme has allocated £7.1 billion to support the modernisation of HMNB Devonport. This funding is expected to create around 5,500 new roles at Babcock, alongside a further 2,000 construction jobs - generating substantial economic activity across the region. 

Babcock’s role in Plymouth

The continued investment into Babcock further reinforces Plymouth's growth trajectory. The company recently announced plans for a new Capability Centre in Plymouth city centre, relocating approximately 2,000 employees and supporting wider regeneration efforts.

As the principal industrial partner at Devonport, Babcock is expected to play a central role in delivering the infrastructure, engineering and maintenance capabilities needed to support the next generation of naval and submarine programmes.

A growing centre for defence innovation

Additionally, through the Plymouth and South West Defence Growth Deal, £50 million is being invested to accelerate defence innovation, maritime autonomy, skills development and new testing infrastructure - helping create hundreds of skilled jobs while attracting further private sector investment.

Plymouth was last year designated the UK’s National Centre for Marine Autonomy (NCMA), in recognition of its growing role in developing autonomous maritime technology. And in November, Europe’s largest defence technology company, Helsing, officially opened its first UK Resilience Factory in Plymouth - helping to cement the city’s reputation as a global leader in the sector.

Meanwhile, initiatives such as Babcock's National Marine Autonomy Accelerator, alongside partnerships with the University of Plymouth, are helping foster collaboration between industry, academia and start-up businesses while supporting the development of future skills.

Strengthening Plymouth’s investment offer

The Plymouth and South Devon Freeport adds another dimension to the city's investment appeal. Designed to attract businesses operating in marine, defence, clean technology and advanced manufacturing sectors, the Freeport offers significant tax and business incentives and is expected to unlock hundreds of millions of pounds in investment while creating thousands of jobs.

New demand for homes

This unprecedented economic expansion is increasing demand for housing across Plymouth. As more people relocate to the city to take advantage of new employment opportunities, well-connected communities are becoming increasingly attractive.

Plymouth is embarking on one of the most ambitious urban transformations in its history. The City Living Framework is a bold commission led by Plymouth City Council, Homes England, and the UK Government. This nationally significant project will seek to deliver 10,000 new homes, vibrant public spaces, and a thriving economy at the heart of Britain’s Ocean City. 

However, not all of Plymouth’s short and medium-term growth can be accommodated within the confines of the city centre. Given the complexities associated with brownfield regeneration, strategic urban extensions will play a vital role in meeting future housing demand.

Supporting Plymouth’s next chapter at Woolwell

Land at Woolwell in the north of the city is the second largest residential-led site allocation in the Plymouth and South West Devon Joint Local Plan. Located six miles from the city centre and close to several employment hubs, this sustainable urban extension and community park offers the accessibility that a growing workforce requires.

Importantly, Woolwell combines excellent connectivity with exceptional lifestyle benefits. Situated on the edge of Dartmoor National Park and within reach of both the north and south coasts of the south west peninsula, it offers residents access to green space, outdoor recreation and a high quality of life while remaining closely linked to Plymouth's key economic centres.

As investment continues to flow into Plymouth, locations such as Woolwell will play a vital role in supporting sustainable growth, providing the homes needed to attract talent, support employers and ensure the city can fully realise the benefits of this transformational period of growth.

Further information

Contact Nick Jones