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STV News
09-07-2025
- Business
- STV News
Committee urges action from Scottish and UK governments to save Alexander Dennis
Immediate action must be taken to ensure bus manufacturing does not end in Scotland, the Scottish and UK governments have been told. Holyrood's Economy and Fair Work Committee urged the administrations north and south of the border to do all they can to stop the closure of Alexander Dennis in Scotland. Some 400 workers are at risk of redundancy as the company proposes moving its manufacturing from Falkirk and Larbert to Scarborough in North Yorkshire. Colin Smyth, the Labour MSP who convenes the committee, has written to finance secretary Shona Robison and Scottish secretary Ian Murray asking them to set out their plans to save the jobs and wider industry. He said the loss of so many highly-skilled job would be 'devastating' to the local community and country as a whole. 'The committee is clear that the situation is so serious that every possible effort must be made to retain these jobs in Scotland,' he told Robison. Alexander Dennis has said it needs up to 100 bus orders this year and up to 400 next year to avoid the closure of its factories in Scotland. Mr Smyth urged the finance secretary to explain what she is doing to bring new orders forward and stimulate demand for the sector. He urged Robison to strengthen procurement to ensure that local firms are prioritised. The SNP has come under fire from opposition politicians for the number of Scottish buses being built in countries like China, rather than at home, which they say has contributed to the company's decision to move to England. Mr Smyth also expressed concerns around reports that £20 million in support from Scottish Enterprise for Alexander Dennis to research and develop net-zero buses may no longer result in any vehicles being built in the country. The committee has written separately to Scottish Enterprise over the funding. He said to Robison: 'Given the strategic importance of Alexander Dennis, the high quality of its workforce and the role of manufacturing in Scotland's future economy, it is vital that every possible action is taken to retain manufacturing, and the jobs it provides. 'The committee urges the Scottish Government to do all it can, working with partners at every level, to secure a positive outcome. 'Ministers must act with urgency and ambition to help keep these jobs and avoid a world-class manufacturer shutting its doors in Scotland.' In his letter to the Scottish secretary, the committee convener described Alexander Dennis's potential loss as 'deeply concerning'. He said co-operation between Westminster and Holyrood would be 'essential if a viable and sustainable future is to be secured for bus manufacturing in Scotland'. He added: 'I know you agree that the potential end of bus manufacturing in Scotland — with the direct loss of 400 jobs and further losses across the domestic supply chain—would be devastating for the area and for Scotland. 'This is all the more concerning given the growing UK and European demand for buses to support climate, transport, and industrial goals.' He said that while a cross-governmental working group on the issue has already met several times, it was 'clear that urgent decisions are required' as the the redundancy consolation process is set to wrap up on August 15 – something that has already been extended by two weeks. Mr Smyth again raised concerns around the procurement process, saying: 'During our evidence sessions, the Committee heard concerns that, in practice, local content is not being adequately recognised or prioritised in the tendering process.' He added: 'The committee understands that the UK Subsidy Control Act does allow social value to be considered when evaluating bids, enables direct awards, and permits some differential treatment in awarding subsidies.' And he asked Murray to set out what action the UK Government is taking to ensure to ensure domestic manufacturing is prioritised. He said: 'Given the scale of potential job losses in Scotland, the importance of maintaining a strong manufacturing base in the UK, and the proven capability of the workforce at Alexander Dennis Ltd, the Committee believes that urgent and coordinated action is essential. 'We therefore urge the UK Government to use every lever at its disposal – particularly through procurement, investment, and industrial strategy — to help secure a future for bus manufacturing in Scotland and protect these skilled jobs.' The Scottish Government, the UK Government and Scottish Enterprise have been approached for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The National
09-07-2025
- Business
- The National
UK and Scottish governments urged to save Alexander Dennis by MSPs
Holyrood's Economy and Fair Work Committee has urged the administrations on both sides of the Border to do all they can to stop the closure of Alexander Dennis in Scotland. Some 400 workers are at risk of redundancy as the company proposes moving its manufacturing from Falkirk and Larbert to Scarborough in North Yorkshire. Colin Smyth, the Labour MSP who convenes the committee, has written to Finance Secretary Shona Robison and Scottish Secretary Ian Murray asking them to set out their plans to save the jobs and wider industry. READ MORE: Octopus Energy boss slams UK Government zonal pricing snub He said the loss of so many highly-skilled jobs would be 'devastating' to the local community and country as a whole. 'The committee is clear that the situation is so serious that every possible effort must be made to retain these jobs in Scotland,' he told Robison. Alexander Dennis has said it needs up to 100 bus orders this year and up to 400 next year to avoid the closure of its factories in Scotland. Smyth urged the Finance Secretary to explain what she is doing to bring new orders forward and stimulate demand for the sector. He urged Robison to strengthen procurement to ensure that local firms are prioritised. Smyth also expressed concerns around reports that £20 million in support from Scottish Enterprise for Alexander Dennis to research and develop net-zero buses may no longer result in any vehicles being built in the country. The committee has written separately to Scottish Enterprise over the funding. He said to Robison: 'Given the strategic importance of Alexander Dennis, the high quality of its workforce and the role of manufacturing in Scotland's future economy, it is vital that every possible action is taken to retain manufacturing, and the jobs it provides. 'The committee urges the Scottish Government to do all it can, working with partners at every level, to secure a positive outcome." READ MORE: Ferguson Marine signs warship parts contract with BAE Systems In his letter to the Scottish Secretary, the committee convener described Alexander Dennis's potential loss as 'deeply concerning'. He said co-operation between Westminster and Holyrood would be 'essential if a viable and sustainable future is to be secured for bus manufacturing in Scotland'. He added: 'I know you agree that the potential end of bus manufacturing in Scotland — with the direct loss of 400 jobs and further losses across the domestic supply chain—would be devastating for the area and for Scotland. 'This is all the more concerning given the growing UK and European demand for buses to support climate, transport, and industrial goals.' He said that while a cross-governmental working group on the issue has already met several times, it was 'clear that urgent decisions are required' as the redundancy consolation process is set to wrap up on August 15. Smyth again raised concerns around the procurement process, saying: 'During our evidence sessions, the Committee heard concerns that, in practice, local content is not being adequately recognised or prioritised in the tendering process.' He added: 'The committee understands that the UK Subsidy Control Act does allow social value to be considered when evaluating bids, enables direct awards, and permits some differential treatment in awarding subsidies.' He asked Murray to set out what action the UK Government is taking to ensure to ensure domestic manufacturing is prioritised. He said: 'Given the scale of potential job losses in Scotland, the importance of maintaining a strong manufacturing base in the UK, and the proven capability of the workforce at Alexander Dennis Ltd, the Committee believes that urgent and coordinated action is essential. 'We therefore urge the UK Government to use every lever at its disposal – particularly through procurement, investment, and industrial strategy — to help secure a future for bus manufacturing in Scotland and protect these skilled jobs.'
STV News
02-07-2025
- Business
- STV News
Alexander Dennis extends redundancy deadline to explore options to save jobs
Alexander Dennis has announced it will extend the consultation period on the future of its Scottish sites, giving the company more time to consider all options to retain staff and facilities. The Scottish bus manufacturer has put about 400 jobs at its Falkirk and Larbert factories at risk as it looks to move all operations to Scarborough, North Yorkshire. A consultation process was due to end at the start of August, but has now been extended by two weeks until at least August 15. Finance secretary Shona Robison welcomed the decision, which would provide more time to explore the option to save jobs. Alexander Dennis announced in June that the site in Falkirk would be shut down and that production lines at Larbert would be suspended upon the completion of current contracts. Appearing before Holyrood's Economy and Fair Work Committee last week, the company said the closure of the Scotland sites was 'not a done deal'. Managing director Paul Davies said orders for up to 100 buses and changes to regulation are needed before the end of the year. He said the firm would need about 70-100 buses by the end of the year and 300-400 for next year. Even with the orders, it was added that there will be a lag before work can begin on manufacturing to allow for design and the acquisition of materials. Mr Davies said the firm would need to see consistent orders made to help stabilise the future of the business in Scotland. In a letter to the committee, Robison said: 'In a positive development, as you may be aware, Alexander Dennis Limited have written to inform the Scottish Government that they have extended the consultation period to provide more time to explore all viable options to retain their hardworking staff and facilities at Falkirk and Larbert. 'This welcome decision is a good sign of collaborative working.' Robison said officials have also met with the company to discuss a potential company furlough scheme. If progressed, it would be the business's offer to its employees to prevent compulsory redundancies among the manufacturing workforce, and would be administered by the business. 'We are in discussions with Alexander Dennis on the potential for the Government to support the company's scheme for a defined period,' Robison said. In relation to orders, Robison said the key issue is to 'establish greater confidence in demand for the double-deck vehicles, which Alexander Dennis manufactures in Larbert. 'Given the relative size of the Scottish bus market, the English market for double-deck vehicles is clearly critical,' she told the Economy and Fair Work Committee. There are around 3,500 public sector vehicle buses operating in Scotland, according to Robison, with a split between double-deck and single-deck. Meanwhile, there are around 30,000 such vehicles in the English market. Robison also addressed criticism from SNP opponents over the Scottish Government's support and procurement from Alexander Dennis. Scottish Labour leader Anas Sarwar previously claimed that Labour Greater Manchester mayor Andy Burnham had ordered 'almost four times as many buses from Alexander Dennis than the SNP Government'. In her letter, Robison said the bus market in England operates differently from that in Scotland. 'In England, mayors are buying buses for specific operators in their areas operating through a franchise. In Scotland, the Scottish Government has provided funding for national grant programmes that have supported the needs of bus operators across the whole country,' she said. 'Since 2020, through these competitive funding programmes, Alexander Dennis has secured orders for more than 360 vehicles, more vehicles than any other manufacturer. 'The Scottish Government is urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland. This exploration includes consideration of what can lawfully be done to provide support to the bus manufacturing industry in line with procurement and subsidy control rules.' As consultations over the potential job losses and facilities closures continue, Robison said officials from both Governments continue to meet regularly about the situation through a joint Scottish Government / UK Government working group, which met for the fourth time on June 30. Meetings are also taking place between Robison, Alexander Dennis, and trade unions, Unite and GMB. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Evening Standard
02-07-2025
- Business
- Evening Standard
Alexander Dennis redundancy consultation extended by two weeks
In a letter to Holyrood's Economy and Fair Work Committee, Shona Robison said: 'In a positive development, as you may be aware, ADL (Alexander Dennis Limited) have written to inform the Scottish Government that they have extended the consultation period to provide more time to explore all viable options to retain their hardworking staff and facilities at Falkirk and Larbert.
The Herald Scotland
13-06-2025
- Business
- The Herald Scotland
Colleges have unfinished business on the reform front
James Withers recently gave evidence at the Scottish Parliament's Economy and Fair Work Committee, and he expressed some concerns at the pace of reform and the persistence of systemic fragmentation in our post-school education and skills training system. Colleges are not benefitting from this ecosystem, but more importantly neither are learners. Change is moving very slowly when the world is moving very quickly. Andy Witty, Director of Strategic Policy and Corporate Governance for Colleges Scotland has said that there needs to be urgent action on reform in the college sector. (Image: Colleges Scotland) There was a very clear warning in the Withers Review – do not cherry pick, implement all of the recommendations – but we are now in a position, two years on, that some parts are slowly moving forwards and some parts are not. One major recommended change was the creation of a single funding body to consolidate responsibilities currently divided between the Scottish Funding Council (SFC), Skills Development Scotland (SDS), and potentially the Student Awards Agency Scotland (SAAS). This complex, fragmented and confusing funding landscape could be reformed with the upcoming Tertiary Education and Training Bill currently moving its way through the Scottish Parliament. But other recommendations remain on the proverbial shelf. Many of these would massively improve the experience of learners using colleges, and of college graduates now in the world of work. There was a recommendation for the creation of a national, lifelong digital training record. This initiative aims to chart individuals' skills development throughout their lives, connecting into a revitalised careers service, allowing Scotland's learners to track and showcase their skills and qualifications throughout their lives. There was also a recommendation to end the 'false dichotomy' between academic and vocational pathways and critically achieving "parity of esteem" across all post-school learning pathways. James Withers argues that all educational routes—whether academic, vocational, or work-based—should be valued equally, recognising that learners are diverse. We support this fully. At Committee in March, Withers also expressed concern over the slow pace of implementation, cautioning against allowing existing institutional interests to dictate the pace and direction of change. He stressed the importance of designing a system centred on the needs of learners and employers, rather than preserving the status quo. The status quo for colleges is that they are delivering a world-class service on an ever-reducing amount of funding – real-terms investment into Scotland's colleges has dropped by 17% since 2021/22. This isn't sustainable on a stand-still basis let alone while funding pressures keep rising – the vital need to support more students with additional support needs, real urgency to invest in digital infrastructure as well as physical infrastructure, and inflation pushing up education and skills training delivery costs as well as energy bills and additional employer National Insurance Contribution costs for colleges. Scotland must have the ability to adapt its post-school learning system to meet the ever-evolving demands of the economy and society. These demands are coming quicker and faster and with stronger signals of change than ever before. While the vision for a streamlined, learner-centric post-school education system has been articulated, the journey from recommendations to realisation remains incomplete - there is an urgent need for action to transform Scotland's skills landscape. Colleges are very willing to play their part in that. Andy Witty is Director of Strategic Policy and Corporate Governance for Colleges Scotland.
