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McGill's files legal action after £4.3m electric bus funding rejected

News imageSNS A blue and white single-decker McGill's bus driving on Union Street in GlasgowSNS
McGill's serves local networks across Scotland's central belt

Bus firm McGill's has filed a legal claim after being rejected by the Scottish government for £4.3m of funding for new electric buses.

The Greenock-based operator - owned by billionaire brothers James and Sandy Easdale - failed to secure support from the third phase of the Scottish Zero Emission Bus Challenge Fund (ScotZeb).

In March, ministers approved £45m of awards to bus firms Ember, Stagecoach, Rock Road, Lothian and First Bus.

McGill's has now submitted a claim with the Competition Appeal Tribunal in a bid to overturn the decision and reform the award process.

The company had secured funding in the first two phases of the ScotZeb scheme.

McGill's said it had planned to use its third phase bid to purchase vehicles from ailing bus builder Alexander Dennis.

Sandy Easdale said it would have enabled McGill's to remove more diesel vehicles from its fleet in Scotland and secure jobs at Alexander Dennis.

He added: "The largest share – £13m – was awarded to coach firm Ember to buy 100 Chinese electric coaches to expand its existing network, which would not result in any diesel vehicles being replaced.

"We have questionable decisions being made on large amounts of public money by nameless people in secret rooms who are trying to avoid scrutiny.

"Decisions on taxpayers' sums of this magnitude should be fully transparent and decision-makers should be willing to be held accountable."

'Fairness and transparency'

James Easdale – whose company Dalglen (No 1813) Limited donated £150,000 to Scottish Labour – added: "There is also a fundamental question about fairness and transparency in how this funding has been allocated.

"We have looked very closely at the scoring process and reached the inevitable conclusion that a legal appeal had to be submitted."

McGill's previously secured £8.66m in government support for 41 buses through the first phase of the scheme in 2022.

The firm was also part of a consortium led by energy technology company Zenobe, which was awarded £41.7m, for 42 buses in the second phase of ScotZeb in 2024.

A Transport Scotland spokesman said: "We are aware that McGill's Buses has submitted a claim to the Competition Appeal Tribunal.

"As this matter relates to legal proceedings, it would not be appropriate to comment further at this stage."