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Why is there a public funds row over Alexander Dennis leaving Scotland
Why is there a public funds row over Alexander Dennis leaving Scotland

The Herald Scotland

timea day ago

  • Business
  • The Herald Scotland

Why is there a public funds row over Alexander Dennis leaving Scotland

A government funding row stems from ADL securing tens of millions in [[pub]]lic money after first proposing to cut around one-third of its Scottish workforce, including facilities in Falkirk and Larbert in 2020 and then admitting it is looking to move to England in June. Scottish Enterprise, the agency managing government support, has stated that its most recent review found 'no risks had been identified that would preclude continued funding' to Alexander Dennis. Who is Alexander Dennis and why does it matter to Scotland? Alexander Dennis Limited (ADL) is a major bus and coach manufacturer headquartered with bases in Falkirk and Larbert. Formerly Scottish-owned, it was acquired by Canada's NFI Group in 2019. ADL employs around 1,850 people in the UK, with a significant proportion based in Falkirk and Larbert. The company is a leader in zero-emission bus technology - electric and hydrogen buses - and plays a key role in delivering Scotland's and the UK's green transport ambitions. What are the current challenges facing Alexander Dennis? ADL says it faces an 'uneven playing field' due to policies that favour foreign competitors, including Chinese electric bus manufacturers, whose market share recently rose from 10% to 35% in the UK market ADL's leadership highlighted that government procurement and subsidy schemes tend to prioritise lowest cost rather than domestic manufacturing or local job creation Additionally, UK policies under the Subsidy Control Act 2022 limit the ability to favour domestic suppliers in public funding, while Scottish rules require UK-based firms to meet Fair Work First standards, which it is claimed put ADL at a competitive disadvantage compared to international rivals who are not bound by these conditions. READ MORE from Martin Williams: Bus firm off to England in £90m Scots public funding row may get even more millions Swinney got year-long warning England-bound bus firm was 'reconsidering' Scotland FM in funding row as £90m public cash for Scots jobs given to firm going to England Union says 1600 Scots jobs at risk if government doesn't act in 'national interest' Scottish Zero Emission Bus Challenge Fund (ScotZEB) allocated £100m for green bus procurement. However, according to former SNP minister Michael Matheson with 523 vehicles ordered, only 162 - less than a third - were built by Scottish manufacturers like Alexander Dennis. It was estimated the rest went to overseas firms, including around half from China. Why are jobs in Scotland at risk? In September 2024, ADL launched a consultation on cutting 160 jobs at its Falkirk site due to funding imbalance and policy challenges In June 2025, the company announced plans to end manufacturing altogether in Falkirk and Larbert, consolidating operations at its English site in Scarborough—putting up to 400 jobs at risk in Scotland. (Image: Andrew Milligan/ PA) Unite and other unions warned that up to a multiplier of 1,600 jobs could be affected in the wider supply chain and support services if the closures proceed. Why is this important to Scotland? ADL is one of the largest manufacturing employers in central Scotland with many roles in engineering, apprenticeships, and high-skill technical jobs. The loss of production capacity would affect not only existing jobs but also local supply chains and community livelihoods ADL positions Scotland at the forefront of zero-emission transport technology, aligning with national climate targets and global export opportunities. It is argued that losing manufacturing in Larbert and Falkirk would diminish Scotland's ability to innovate and scale production in green mobility - a strategic disadvantage amid increasing global demand for clean public transport. Why is the public funding of Alexander Dennis an issue? ADL has received some £90m of taxpayer cash over the past ten years and tens of millions since a 2020 plan to axe a third of its Scottish workforce in advance of June's plan to exit to England. The firm had also admitted they had been 'forced' to offshore certain manufacturing functions to China. The public funding is contentious because substantial taxpayer money - allocated to secure jobs and promote clean, local manufacturing in Scotland has coincided with offshore production, reduced domestic orders, and now a possible factory closure and mass redundancies. This raises questions over policy design, procurement strategy, and accountability for economic outcomes. What does the Scottish Government say and how are they responding? Deputy First Minister Kate Forbes described the situation as 'hugely worrying' and says the [[Scottish Government]] is actively exploring all options to preserve jobs and retain manufacturing capacity in Scotland. The government is working with the UK Government, Transport Scotland, Scottish Enterprise, and trade unions to identify mitigation measures and potential support programs. What solutions are being proposed? Fairer procurement frameworks involving publicly funded support, including giving greater weight to local content and job creation. There has been a call for the creation of a strategic industrial partnership involving government, trade unions, industry, and colleges to support retention, reskilling, and redeployment of skilled staff in transitioning industries. Euan Stainbank MP and others have urged city-region mayors in England to place zero emission bus orders with ADL in Scotland. Their letter proposes orders totaling 70 buses in 2025, and 320 buses in 2026, to maintain steady production and job continuity. Prime Minister Sir Keir Starmer confirmed Labour support, stating they're working with mayors to secure future orders and uphold manufacturing in [[Falkirk]] and Larbert. A joint UK-Scottish Government working group, alongside Scottish Enterprise and trade unions, is meeting weekly to explore viable ways to sustain local operations.

Public funding row bus firm Alexander Dennis may get more millions
Public funding row bus firm Alexander Dennis may get more millions

The Herald Scotland

timea day ago

  • Business
  • The Herald Scotland

Public funding row bus firm Alexander Dennis may get more millions

The develpment comes amidst a public funding row which saw ADL receive tens of millions from the public purse even after it embarked on a plan to axe a third of its Scottish workforce five years ago. ADL has been warned by the Scottish Government that some of the millions could be subject to clawback if goes ahead with the move to England. The Scottish Government's Scottish Enterprise agency has said in a briefing from July 18 that in its most recent review in December, "no risks had been identified that would preclude continued funding". Scottish Enterprise says that that a joint UK working group involving themselves and the UK and Scottish governments are identifying solutions that they say "support continued investment and employment at ADL's Scottish sites". It has said that no funding has been paid out yet since the company announcement but that any support was subject to "rigorous monitoring and safeguarding measures". Scottish Enterprise chief executive Adrian Gillespie said: "We will continue to work closely with all partners to explore all avenues to retain jobs and secure long-term investment". Alba Party leader Kenny MacAskill said all further [[pub]]lic funding of ADL should cease unless there is a commitment to remain in Scotland and that millions should be clawed back if ADL departed. Last month, Alexander Dennis began consultations on a plan to close its Falkirk operations and cease manufacturing at its Larbert base with the loss of 400 on site jobs. Manufacturing would be centralised at its Scarborough operation which has the capacity to produce around 1,200 buses a year. The agency analysis came in response to a group of MSPs seeking a clear outline of the actions Scottish Enterprise is taking now, in coordination with the Scottish Government and other partners, to support continued manufacturing and investment at the Scottish sites. Unite Scotland estimates that up to 1,600 jobs could be at risk when supply chain roles are included and has warned of a 'devastating' impact on communities already reeling from the Grangemouth oil refinery closure. Ministers have confirmed that should Alexander Dennis go ahead with exiting Scotland, the financial assistance paid may be subject to "clawback". They have said that it will be down to Scottish Enterprise to decide on how to proceed. Kenny MacAskill According to Scottish Government records, ADL received £58m of public 'subsidy' for green vehicles since 2020 under two schemes aimed at transitioning Scotland to green buses - despite the company having embarked on a 2020 plan to axe a third of its Scottish workforce. And some £30m of jobs grants for research and development over 10 years has come from the Scottish Government's economic development agency Scottish Enterprise. Some £11.2m of those jobs grants from Scottish Enterprise came in 2023, three years after concerns were raised over ADL embarking on major job cuts. By the time the 2020 jobs cut was in place, ADL had already received over £8m in 'job securing' taxpayer funding which was promoted as supporting building a new greener business in Scotland. The Herald revealed that ADL warned the First Minister it was "'reconsidering' its 'entire investment' in Scotland — a year before announcing plans to relocate to England. He was also told they had already been 'forced' to offshore certain manufacturing functions to China. The First Minister intervened after learning of potential redundancies at the firm, suggesting 'further capital support' and advising Scottish Enterprise to 'exhaust all options to support the business'. Finance secretary Shona Robison has said that Scottish Enterprise "is continuing to work closely with ADL to try to find a positive solution". ADL has allowed an extra fortnight for efforts to save the jobs of workers in Falkirk and Larbert. A deadline for a consultation is now set for August 15. SNP's Alex Salmond and Nicola Sturgeon once set out the economic case for Scottish Independence from an Alexander Dennis depot (Image: Newsquest) Mr MacAskill, who said the job losses were "unacceptable", said ADL "must be held to account if they choose to relocate south of the border". And he said any further financial support given must contain firm guarantees that ADL is staying in Scotland and that funds can be recouped if there is any change of mind. He said: "Falkirk and Larbert have served them well over the years and Scottish Governments and agencies have supported them handsomely. Closure is bad enough but relocation rubs salt into the wound. "Any funds that can be clawed back absolutely must be. The workers community and Scotland deserve no less. READ MORE from Martin Williams: How buying Chinese sparked public funding row over Scots bus jobs going to England? Swinney got year-long warning England-bound bus firm was 'reconsidering' Scotland FM in funding row as £90m public cash for Scots jobs given to firm going to England Union says 1600 Scots jobs at risk if government doesn't act in 'national interest' "Workers are entitled to loyalty from their governments as well as their employers. Public funds are for public good." Ministers have said they are working with bus operators to drum up interest for much-needed orders for ADL. The company has previously said that it would need to see a significant rise in bus orders – between 70 and 100 by the end of the year and 300-400 next year – to remain open. In a briefing, Scottish Enterprise chief executive Adrian Gillespie said that it remained "fully committed to supporting ADL and safeguarding Scotland's strategic manufacturing capabilities". He added: "We will continue to work closely with all partners to explore all avenues to retain jobs and secure long-term investment." Adrian Gillespie (Image: SE) The agency has said that past funding typically include obligations such as job creation or retention, matched funding from the company involved. And while it said that while the specific terms agreed with ADL are "commercially sensitive" it "rigorously monitors all funded projects to "ensure compliance and value for public investment". "Monitoring includes regular reporting on technical progress, milestone achievements, and any deviations from the original project plan. Risks are assessed prior to each payment," said Mr Gillespie. "As of the most recent review, no risks had been identified that would preclude continued funding. Scottish Enterprise's grant conditions include key safeguards and the option to claw back funding." He added that "we remain fully committed to supporting ADL and safeguarding Scotland's strategic manufacturing capabilities. "Scottish Enterprise is working closely with ADL, the Scottish Government, and UK partners to exploit all viable options to retain ADL operations and employment in Scotland." Ministers say there is a commitment from ADL to consider keeping chassis manufacture as well as the possibility of single deck bus manufacture in Scotland. And they say action is being taken to liaise with commercial bus operators and local transport authorities to establish the current demand for double deck buses in Scotland and were working alongside the UK Government to identify demand in other parts of the UK. But there remains concerns that UK subsidy rules which has curbed [[Scottish Government]] action in providing a direct contract award to its own Inverclyde shipyard firm Ferguson Marine is hindering attempts to give [[pub]]licly funded support for ADL to try and keep the company in Scotland. But Ms Robison has said it was for the UK Government to make any changes to the Subsidy Control Act which might benefit Scottish businesses. She has told MSPs that the government was committed to looking at "all viable options" and are working with private bus companies. 'I agree about the importance of securing a short-term pipeline of orders,' she said. 'Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK," she said in a briefing. 'I am in full agreement with you about the importance of Alexander Dennis to Scotland and of retaining the jobs of the highly-skilled workers. 'That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland.' Kate Forbes (Image: Colin Mearns) Deputy first minister Kate Forbes said: 'Our absolute focus continues to be on exploring all viable options to support Alexander Dennis Ltd, its workforce and the families and communities they support. 'The [[Scottish Government]] continues to work in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the [[UK Government]] during the consultation period. 'This work includes discussions on potential support for a company furlough scheme and urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland. "

The Teachers Union Could Use a Visit From 16 Rabbis
The Teachers Union Could Use a Visit From 16 Rabbis

Wall Street Journal

time2 days ago

  • Politics
  • Wall Street Journal

The Teachers Union Could Use a Visit From 16 Rabbis

Extrapolating from the concerns that Jonathan Greenblatt rightly raises in his op-ed, 'Antisemitism and the Teachers Union' (July 17), America's tax dollars are going to teaching anti-Zionist beliefs in K-12 schools. When Mr. Greenblatt replaced Abraham Foxman as head of the Anti-Defamation League, many of the more conservative Jews were concerned that the ADL was being pulled too far to the left. Thankfully, Mr. Greenblatt seems to have recognized that much antisemitism these days comes from the left and has adjusted his viewpoint accordingly.

NEA halts bid to cut ties with Jewish organization
NEA halts bid to cut ties with Jewish organization

Politico

time3 days ago

  • Politics
  • Politico

NEA halts bid to cut ties with Jewish organization

With help from Rebecca Carballo NEA BACKS OFF — The National Education Association's top brass shot down their members' bid to block future work with the Anti-Defamation League following criticism from Jewish organizations and renewed conservative scrutiny of the union's congressional charter. — NEA President Becky Pringle, in a lengthy statement issued late Friday, said the union's board of directors and executive committee voted against a proposal members narrowly approved for consideration on July 5 during the union's annual assembly of thousands of local representatives. — 'We consulted with NEA state affiliates and civil rights leaders, including Jewish American and Arab American community leaders, and we also met with ADL leadership,' Pringle said. 'After consideration, it was determined that this proposal would not further NEA's commitment to academic freedom, our membership, or our goals.' — Union delegates had recommended the NEA 'not use, endorse, or publicize any materials from the Anti-Defamation League' such as curricular materials or statistics, while blocking the union from participating in ADL programs or publicizing the organization's professional development offerings. — The proposal to preempt ties with a prominent Jewish advocacy organization highlighted ongoing internal union divisions over the Israel-Gaza war that threatened to disrupt the NEA's planned endorsement of Joe Biden's campaign last year. — 'This resolution was not just an attack on the ADL, but a larger attack against Jewish educators, students, and families,' ADL CEO Jonathan Greenblatt, American Jewish Committee CEO Ted Deutch, Conference of Presidents of Major American Jewish Organizations COO Stephanie Hausner, and Jewish Federations of North America Executive Vice President Shira Hutt said Friday in a joint statement. — 'While teachers' unions have little power to dictate curriculum, divisive campaigns to boycott reputable, centrist Jewish organizations and educators normalize antisemitic isolation, othering, and marginalization of Jewish teachers, students and families in our schools,' they said. — Republican lawmakers further cited the proposal as added fodder for longrunning attempts to strip the NEA of a congressional charter — a type of formal recognition the union has received alongside dozens of other private or quasi-governmental nonprofit organizations. — 'The National Education Association has made it crystal clear it's a partisan organization, and it shouldn't be rewarded with a federal charter that platforms woke gender ideology, antisemitism, and left-wing propaganda,' Sen. Marsha Blackburn (R-Tenn.) said last week as she introduced the latest Republican bill to erase the NEA's charter. — Pringle responded that 'without equivocation, NEA stands strongly against antisemitism.' But she acknowledged debate over a destructive and prolonged conflict will continue among students, educators, religious leaders and politicians. — 'Not adopting this proposal is in no way an endorsement of the ADL's full body of work,' Pringle said Friday. 'We are calling on the ADL to support the free speech and association rights of all students and educators.' IT'S MONDAY, JULY 21. WELCOME TO WEEKLY EDUCATION. Congressional Republicans really like the 2017 Trump tax cuts. It's why the 'big, beautiful bill' costs so much. Reach out with tips to today's host at jperez@ and also my colleagues Becca Carballo (rcarballo@ Bianca Quilantan (bquilantan@ and Mackenzie Wilkes (mwilkes@ Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Education Department REJECTED — The Education Department will reject nearly a half-million applications from people seeking to make lower payments on their student loans, Becca reports. — The agency will deny 460,000 federal student loan borrowers who selected the lowest monthly option for a payment plan based on their income. They make up about 31 percent of a 1.5 million application backlog for borrowers who are seeking Income-Driven Repayment, one of many options typically available for borrowers having difficulty paying back their loans. — An Education Department spokesperson said the lowest monthly payment option was the SAVE Plan, a Biden-era plan that would cap payments at 5 percent of the borrower's discretionary income for undergraduate loans and 10 percent for graduate loans. It has been blocked by the courts since June 2024. — 'Loan servicers cannot process these applications as SAVE is no longer an option, as it is illegal,' a department spokesperson said. — The agency is introducing two new payment plans and phasing out the matrix of current options as part of President Donald Trump's sweeping reconciliation legislation. His administration has railed against SAVE for being a burden to taxpayers and called for simplifying the loan repayment process as part of a broader strategy to reshape how students borrow and pay back loans. White House CHECK PLEASE — The Trump administration will release some fiscal 2025 funds that help pay for summer and after-school programs today, which could help ease an immediate budget crunch facing local school systems while billions of dollars in additional federal aid are still being withheld by the White House. — An Office of Management and Budget review of the Education Department's 21st Century Community Learning Centers program is complete, according to a senior administration official who said the money — estimated to total approximately $1.3 billion — will be distributed as expected. — Education Department officials said the money will be sent to governments on Monday, according to notices shared with federal and local officials that were obtained by POLITICO. — The department, however, warned states to ensure the money is spent in accordance with existing federal civil rights and anti-discrimination laws — or risk 'appropriate enforcement action.' The agency also intends to review how the program's money is used 'to ensure ongoing compliance,' officials said. — Billions in federal education funding is still being withheld by the White House. Funds devoted to teacher training, migrant student education and other initiatives are under continued scrutiny as part of Trump's broader agenda of scrutinizing matters related to immigrants and the LGBTQ+ community. — 'These are the programs that we have some of the gravest concerns with regarding the Education Department,' OMB Director Russ Vought told reporters last week during an event hosted by the Christian Science Monitor. — 'You have a preschool program that doesn't do any preschool funding, all it does is indoctrination of 4-year-olds of [critical race theory],' Vought said. 'You have school improvement programs that are indoctrinating teachers to be cultural revolutionaries in the classroom. So we have concerns with these programs, so they're the ones that we're going to study the most.' — Final decisions related to the billions of dollars in pending federal aid have not yet been made, department officials said on Friday. Two dozen and the District of Columbia states sued the Trump administration last week to challenge the delayed funding. Prominent Republicans are also challenging the administration to release the funds. STUDENT DEBT CHANGE IS COMING — The Education Department is outlining some expected immediate changes to federal student aid programs now that Trump's domestic policy megabill has been signed into law. — Regulations and guidance on other education provisions of the One Big Beautiful Bill Act are also expected later this year. Here's what to expect now, according to a Dear Colleague letter issued by the department on Friday. — Changes to income-based repayment: The law removes the requirement for borrowers to demonstrate a partial financial hardship in order to enroll in IBR. — Parent PLUS loan repayment options: Borrowers with a consolidation loan that have already repaid a parent PLUS loan will be able to enroll in an IBR plan when the law is enacted. More information and updates will be posted on — Loan limits for part-time students: The law reduces how much students can borrow if they are not enrolled full time. This reduction will be based on how long the student isn't enrolled full time. The department is currently developing a schedule and will submit it to the public later this year. — Public Service Loan Forgiveness: The Repayment Assistance Plan, which will be implemented no later than July of next year, will be a qualifying plan for Public Service Loan Forgiveness. — Biden-era regs: The department will be undoing changes the Biden administration made to borrower defense and closed school discharge regulations. Read the department's full letter. Report Roundup — Nearly one-third of the nation's K-12 public schools mandate mental health screening for students, according to a newly-published study led by RAND Corporation researchers that suggests there are multiple barriers to mental health screening in schools. Nearly 41 percent of principals surveyed in October 2024 said it was very hard or somewhat hard to ensure that students receive appropriate care, while roughly 38 percent said it was easy or very easy to find adequate care for students. Syllabus — As Harvard and Trump head to court, the government piles on the pressure: The New York Times — George Mason president discriminated against white people after George Floyd protests, Justice Dept. says: The Chronicle of Higher Education — 'Congress swung for the fences on school choice and hit a single': Education Next — 28 bills, Ten Commandments and 1 source: A Christian right 'bill mill': The 74 — Chatbots in the classroom: How AI is reshaping higher education: Financial Times

Musk says xAI will make kid-friendly app 'Baby Grok'
Musk says xAI will make kid-friendly app 'Baby Grok'

Economic Times

time4 days ago

  • Business
  • Economic Times

Musk says xAI will make kid-friendly app 'Baby Grok'

Agencies Elon Musk-led artificial intelligence company xAI is working on a kid-friendly version of its Grok chatbot, the billionaire said in a post on social media platform X. 'We're going to make Baby Grok @xAI, an app dedicated to kid-friendly content,' Musk posted on Sunday. The new version is expected to launch as a separate application tailored for younger users, though further details are yet to be announced. The announcement comes days after X, also owned by Musk, temporarily disabled new Grok mentions on the platform to address spam-related Musk hinted at a new capability that would enable Grok to generate viral videos, further expanding its creative tools. Grok 4 capabilities xAI launched its latest flagship model, Grok 4, on July 10, positioning it as a significant upgrade following criticism over antisemitic responses from earlier versions. The backlash included concerns raised by users on X and the Anti-Defamation League (ADL), after the chatbot was found praising Adolf Hitler in certain prompts. During a livestream event, Musk and the xAI team also introduced a $300-per-month AI subscription called SuperGrok Heavy, featuring the company's multi-agent version of Grok 4. The upgrade aims to improve performance across advanced reasoning and creative tasks. Benchmark performance Grok 4 recently topped the Artificial Analysis Intelligence Index, a benchmark suite assessing models across a range of capabilities: MMLU-Pro: Multitask language understanding GPQA Diamond: Graduate-level problem solving Humanity's Last Exam: General and existential reasoning LiveCodeBench: Real-time programming SciCode: Scientific computation and modeling AIME: Olympiad-level math reasoning Math-500: Advanced mathematical problem-solving Each of these benchmarks focuses on measuring the reasoning capabilities of next-generation AI models. Grok for government xAI also recently announced Grok for Government, a suite of its AI models made available for use by US federal agencies. The company said its inclusion in the General Services Administration (GSA) schedule will allow any federal department or agency to directly procure xAI the company is reportedly in talks to raise fresh capital at a potential valuation between $170 billion and $200 billion, according to the Financial Times. If finalised, this could make xAI one of the most valuable private AI companies US continues to lead the global AI race, producing 40 notable models in 2024 so far. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. What's keeping real retail investors out of the Nvidia rally If data is the new oil, are data centres the smokestacks of the digital age? The hybrid vs. EV rivalry: Why Maruti and Mahindra pull in different directions. What's best? Instagram and YouTube make billions off creators. Should they pay up for their mental health? Trent trips on the ramp. Is it still worth the splurge or time to change brands? Best way to deal with volatility, just ' Hold' for wealth creation: 7 large-cap stocks with an upside potential of up to 41% Stock picks of the week: 5 stocks with consistent score improvement with an upside potential of 16 to 38% in 1 year Headwinds, yes, but long-term story intact. 7 stocks from the engineering sector with upside potential from 21 to 42%

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