Bus operator files legal claim after £4.3m electric funding rejected

McGill's, a Greenock-based bus operator, filed a legal claim with the Competition Appeal Tribunal after the Scottish government rejected its application for £4.3 million in funding for new electric buses. The operator did not receive support from the third phase of the Scottish Zero Emission Bus Challenge Fund. In March, the government approved £45 million in awards to five other bus companies.

Background on prior funding McGill's had received £8.66 million for 41 buses in the first phase of the scheme in 2022. It was also part of a consortium awarded £41.7 million for 42 buses in the second phase in 2024. The company stated it had planned to use the third-phase funding to purchase vehicles from bus builder Alexander Dennis.

Company statements and government response A company statement said the funding would have allowed replacement of diesel vehicles and supported jobs at Alexander Dennis. It also questioned the scoring process and called for greater transparency in how public money is allocated.

A Transport Scotland spokesman said the agency is aware of the claim but would not comment further because the matter relates to legal proceedings.