Transport Scotland Faces Legal Challenge After Rejecting £16m Electric Bus Bid

Scottish transport operator McGill’s Group is exploring legal options following the rejection of its application for government funding aimed at expanding its fleet of electric buses.

The company had sought £4.3 million in support to acquire 33 zero-emission buses, a project that would have generated an estimated £16 million of business for Scottish bus manufacturer Alexander Dennis, based in Larbert. The vehicles were intended for use on routes serving Clackmannanshire and formed part of McGill’s wider strategy to reduce emissions and support Scotland’s transition to greener public transport.

Despite the proposal, the funding was awarded elsewhere. The largest grant allocation in the round, valued at more than £13 million, went to an operator planning to purchase 100 coaches manufactured in China.

McGill’s chairman, Ralph Roberts, expressed disappointment over the outcome and questioned the way the funding decisions had been made. He argued that the company’s proposal would have delivered economic benefits within Scotland while helping to protect skilled manufacturing jobs.

According to Roberts, the company intends to examine the assessment process in detail to determine whether the funding programme was administered fairly and transparently. He said McGill’s would review the scoring criteria and, if necessary, pursue legal avenues to challenge the decision.

The unsuccessful application was part of a broader effort by McGill’s to contribute to Scotland’s environmental targets, including the government’s commitment to achieving net-zero emissions by 2045. Company representatives also raised concerns that funding intended to replace diesel vehicles was instead directed toward expanding an existing coach network.

The dispute comes at a time when McGill’s has been recognised as one of the country’s leading transport operators. In a recent Transport Focus survey, the company achieved a customer satisfaction score of 97 per cent, earning recognition as the UK’s highest-rated bus operator.

McGill’s has confirmed that it is now seeking legal advice as it evaluates its next steps regarding both the funding decision and the process used to reach it.