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The Herald Scotland
2 days 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.
The Herald Scotland
16-07-2025
- Business
- The Herald Scotland
Why are there concerns for Scotland over Labour's Invest 2035
The warning arrives as uncertainty grows around the future of Ferguson Marine, the last remaining commercial shipyard on the River Clyde. The nationalised firm has struggled with delays and cost overruns surrounding the MV Glen Rosa—a ferry years behind schedule and massively over budget. Until recently, it had just that single contract left, placing its long-term survival in jeopardy. What is Invest 2035? The strategy was formally launched on 23 June 2025, following a public consultation that began in October 2024 with the release of a Green Paper. It was introduced to reverse years of low productivity and weak investment across the UK, provide long-term stability and end the 'policy merry-go-round' that businesses have faced and create a credible 10-year plan to boost growth, tackle regional inequality, and support high-potential sectors. READ MORE by Martin Williams UK maritime trade group urges 'buy British' to prevent erosion of Scots industry Row over ScotGov failure to track jobs supported by public millions 'Shut it down' demands as Scotland's last nuclear plant breaches a safety limit Union seeks more public money support for bus firm looking to move to England It is also seen as a response to the global challenges like the net zero transition, AI and automation, and changing trade dynamics. What are its main targets? It aims to drive sustainable, inclusive, and resilient growth across the UK, increase business investment and attract international capital. It also hopes to support high-quality, well-paid jobs in key sectors. It has a focus is on eight growth-driving sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences and professional and business services. There is a hope of doubling business investment in advanced manufacturing and clean energy by 2035. There is a plan to train one million young people in tech skills by 2030 and boost AI research twentyfold while expanding clean energy investment and growing business investment in creative industries to £31bn It also plans to support regional growth through city-region clusters and strategic hubs and establish a statutory Industrial Strategy Council for oversight and long-term stability as well as accelerating international investment. What are the further concerns of the SMI? The SMI has warned UK ministers that shipbuilding and marine engineering on the Clyde and at Rosyth remain 'vulnerable to international competition,' dominated by state-backed foreign shipyards with easier access to funding and demand. They say this threat will persist unless supported by 'strategic sovereign procurement' — a policy that prioritises buying from domestic firms to boost local jobs and industry. (Image: Andy Buchanan/PA) It said that North Sea oil and gas sector is in 'structural decline' due to decarbonisation, ageing fields, and falling fossil fuel investment, with major impacts expected in Aberdeen and nearby areas. And they say a managed shift to renewables is vital to protect jobs and industrial capacity. And it elt that Aberdeen must win UK wind farm contracts to preserve sovereign energy capability. And the key risk, they warn, is not the transition itself, but failing to equip Scottish communities with the skills, investment, and support needed to adapt. What does the UK Government say about the plan? When the business secretary Jonathan Reynolds introduced the new industrial strategy Green Paper, he described it as 'the UK's modern industrial strategy' aimed at channelling long‑term investment into 'growth-driving sectors' to 'spur growth, spread wealth and drive up employment across all four nations of the UK' He emphasised the importance of the workforce, stating the approach will 'invest in British people to power industrial strategy,' with a £275 million package supporting skills training in areas like engineering, programming and manufacturing to plug growing skills shortages. Keir Starmer (Image: Jonathan Brady) Prime Minister Keir Starmer said the strategy represented a 'targeted, long‑term plan,' marking a break from short‑term policymaking and "sticking plasters of the past". He said: "In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people's pockets as part of the Plan for Change "This is how we power Britain's future - by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear - Britain is back and open for business."
The Herald Scotland
16-07-2025
- Business
- The Herald Scotland
Trade group warns of hit to Scotland from Labour's Invest 2035 plan
They warn that the strategy "does not fully reflect Scotland's unique industrial profile or specific challenges communities" and "lacks specific mechanisms for supporting regions heavily exposed to oil and gas decline". It also comes as concerns continue to surface over the future of the last remaining commercial shipyard firm on the Clyde, the nationalised Ferguson Marine which has until recently and just one contract remaining on its books - to finish the long-delayed and wildly over-budget ferry MV Glen Rosa. READ MORE by Martin Williams Why are there concerns for Scotland over the UK Government's Invest 2035 'Shut it down' demands as Scotland's last nuclear plant breaches a safety limit Union seeks more public money support for bus firm looking to move to England Row over ScotGov failure to track jobs supported by public millions The yard's business plan to 2029 had assumed that it would get a direct award for the Scottish Government's small vessel replacement programme. But the Scottish Government decided this was not possible due to UK subsidy laws and the yard lost out to Polish firm Remotnowa on the first phase of the programme to deliver seven ferries. Sir Keir Starmer launched Invest 2035 (Image: Simon Dawson / No 10 Downing Str) Inverclyde MP Martin McClusky has been further urging the Scottish Government to award the contract for a future replacement for the ageing MV Lord of the Isles directly to Ferguson Marine. The SMI has warned UK ministers that traditional shipbuilding and marine engineering, particularly on the Clyde and Rosyth will remain "vulnerable to international competition" which they say is dominated by state-owned and state-supported shipyards with "readier access to finance and cyclical demand unless underpinned by strategic sovereign procurement". Sovereign procurement is a strategic approach where purchases are made with the explicit goal of benefiting the nation or local economy and often involves prioritising domestic businesses, including small and medium enterprises (SMEs), and supporting local industries and jobs. It pointed out that the sector was once the global leader centred around the Clyde, but had declined rapidly from the 1960s onwards due to global overcapacity, the size of vessels required in the market outgrowing UK yards, the cost of competition from East Asia and also a "lack of state support, and underinvestment in innovation and productivity". HMS Glasgow is manoeuvered onto a barge at the BAE Govan shipyard in Glasgow (Image: PA) It said: "Transition was not effectively managed, leading to a collapse in employment, decimation of skills, and widespread economic deprivation in riverside communities. Defence contracts have revitalised the sector but at a different scale to pre- and post-war years." And it added in an analysis: "Without sustained investment in shipyard modernisation and green vessel innovation, the sector risks further erosion." It said that the North Sea oil and gas industry was entering a "structural decline" due to decarbonisation, maturing fields and shifts by investors away from fossil fuels and that it was crucial that UK wind farms bought British. It said the transition would have a "profound impact on Aberdeen and surrounding areas, affecting supply chains, services and skilled employment. They said: "While the energy sector is pivoting towards renewables, a managed transition plan is essential to retain industrial capacity and employment. It is essential for ports like Aberdeen to win renewables work with UK windfarms, if the UK wants to maintain its sovereign capabilities in these crucial sectors." But they warned that the "key risk" was not in transitioning, but in "failing to equip Scottish communities and firms with the tools, skills and investment to navigate it successfully. A place-sensistive, sector-specific response is needed". It said that while the ambition of Invest 2035 was to drive growth, productivity and innovation across the UK, the strategy "does not fully reflect Scotland's unique industrial profile or the specific challenges facing its coastal and energy-transitioning communities". It said that while the strategy references a shift to Net Zero, it "lacks specific mechanisms for supporting regions heavily exposed to oil and gas decline, such as north-east Scotland". The SMI added: "Despite Scotland's significant shipbuilding, port, and marine technology capabilities, the maritime sector is underrepresented in Invest 2035's eight growth-driving sectors. This risks overlooking critical opportunities for coastal regeneration, sovereign manufacturing, and decarbonisation leadership. "Scotland is well placed to contribute to the UK's global competitiveness in maritime defence, offshore renewables, and digital ocean infrastructure. Invest 2035 should embed export-oriented growth strategies for these subsectors and provide a framework for long-term sovereign procurement that supports Scotland's shipyards and marine engineering firms. Nicola Sturgeon at Ferguson Marine (Image: PA) "In summary, Invest 2035 requires greater regional tailoring, stronger maritime inclusion, and deeper integration with Scotland's economic strategies to realise its full potential north of the border." Analysis from the Robert Gordon University last month warned that the oil and gas industry could lose up to 400 jobs every two weeks for the next five years unless action is taken. It says that the UK risks losing tens of thousands of offshore energy jobs by 2030 unless urgent and coordinated action is taken immediately. It is estimated that 43% of the UK's oil and gas jobs are in Scotland. Demands have been made for an independent public inquiry as it was claimed hundreds of millions of pounds of taxpayers money has been 'lost' by a 'scandalous' ministerial failure to properly consider a Clyde shipbuilding revolution. Ministers have given the nod to contracts to build 13 ferries in the past decade, pushing a billion pounds with only one so far delivered and the responsibility for only two given to Scottish firms. The cut price catamaran ferry revolution which promised to create and secure hundreds of Scots jobs and save state-controlled Scots shipyard firm Ferguson Marine while helping solve the nation's ferry crisis involved the creation of a fleet of 50 catamarans. It was part of an £800 million scheme - a fraction of the cost of those currently being built. The proposal works out at £16m per catamaran while the cost of the Scottish Government's 13 is at around £70m to date. It was envisaged that the major catamaran project would be based at nationalised Ferguson Marine, Inchgreen dry dock in Inverclyde and Govan dry dock. A UK Government spokesman said: "Our commitment to shipbuilding was made clear when we secured a deal to save thousands of jobs at Harland and Wolff, including in Scotland, ensuring future investment in the industry." 'Our Modern Industrial Strategy will go even further to ensure a bright future for Scottish shipbuilding with lower energy costs, major infrastructure investment and strengthened skills and innovation as part of our Plan for Change.' Deputy First Minister Kate Forbes said the Scottish Government agreed that Scotland must receive a fair share of spending, including on naval shipbuilding, "at which we have proven expertise". She added: 'The shipbuilding sector plays a vital role in supporting jobs and driving economic growth across Scotland. We are committed to promoting manufacturing and innovation and continue to engage with businesses in the sector as part of that commitment.'
The Herald Scotland
15-07-2025
- Business
- The Herald Scotland
Row over ScotGov failure to track jobs supported by public millions
The Scottish Government says it does not have data on the number of manufacturing jobs created in the past five years - which includes public investment made to bus maker Alexander Dennis - which is planning to move production to England endangering 400 Scottish jobs. And ministers are being further questioned about how the Scottish Government's Green Industrial Strategy, published in September 2024, contains no reference to bus manufacturing in Scotland. Last month, Alexander Dennis announced it was considering relocating production from its Larbert and Camelon sites near Falkirk to Scarborough in North Yorkshire, citing cost-cutting reasons. Union representatives have said the move could endanger approximately 400 Scottish jobs. This news follows the loss of more than 400 jobs just a few miles away in Grangemouth, where the local oil refinery recently closed and was converted into an import terminal. READ MORE from Martin Williams: 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' The Herald revealed that nearly £90m of public money gone to Alexander Dennis to support Scottish jobs over ten years before it embarked on plan to move operations to England. 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 in 2020. A bus on the Alexander Dennis pipeline in Falkirk 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. Former community safety minister Ash Regan who has been quizzing ministers about the number of manufacturing jobs created as a result of public and private investment - was told that neither the Scottish Government or Scottish Enterprise held the information. She was told in as response that details on analysis on how Scotland has performed in terms of attracting investment in key sectors was available from an survey carried out by consultants EY. Alba's Edinburgh Eastern MSP said: 'The Scottish Government should be tracking investment across the country so that we can ensure that we are committing the right resources to where they are needed most to maximise benefit for Scotland. Their failure to do so leaves inward investors and SMEs with a postcode lottery to secure the support of the Scottish Government and Scottish Enterprise. 'A national effort is needed to reverse the manufacturing decline of the past decades and ensure that every community in Scotland gets the right investment to create opportunities, ensuring that good jobs are on the doorstep of all Scots." Last week, Fife-based bus manufacturer has made 81 employees redundant after it entered administration. Workers at Greenfold Systems Ltd in Dunfermline were previously put on notice of potential job losses as a knock-on effect of bus company Alexander Dennis planning to pull out of Scotland. Around half the staff on site were working on parts for the Larbert-based company. And analysis from the Robert Gordon University last month has warned that the oil and gas industry could lose up to 400 jobs every two weeks for the next five years unless action is taken. It says that the UK risks losing tens of thousands of offshore energy jobs by 2030 unless urgent and coordinated action is taken immediately. It is estimated that 43% of the UK's oil and gas jobs are in Scotland. Ash Regan (Image: PA) Ms Regan added: "It seems that there isn't a week that goes by without another blow to Scotland's manufacturing capacity. Whether it's the closure of our only refinery, bus manufacturers or a scale back of the oil and gas industry. Scotland desperately needs an industrial strategy to create and sustain high quality jobs for today and build the skillsets and infrastructure for the emergent industries of tomorrow. 'Inward investment is key to keeping and creating quality jobs in Scotland, by securing our remaining industries. Yet, inward investment alone cannot create and sustain Scotland as the economic powerhouse we should aspire to be. We must also invest in infrastructure for connectivity and support the boundless potential of Scotland's Small and Medium-sized Enterprises (SME) - the economic backbone that drives profits back into Scotland. " The Scottish Government was accused of "strategic neglect" after the Herald revealed the extent of support Alexander Dennis has had - while the First Minister was warned last year that it was "reconsidering" its "entire investment" in Scotland. The SNP-led Scottish Government and the Labour-led UK Government agreed to establish a joint working group to discuss options to find a solution and avert job losses. They are looking at how far they 'can push' the UK 'state aid' rules set out in the Subsidy Control Act 2022 to create a support package to save the 400 jobs. Alexander Dennis have said that they are engaging with both governments "in good faith ". Unions have previously warned that "time is running out" on the company before a request for an extension on consultation over jobs to August 15 was granted, while the Scottish Parliament is in recess until August 31. Meanwhile, Colin Smyth, convener of the Scottish Parliament's economy committee has asked the finance secretary Shona Robison, what the Scottish Government's view is on maintaining domestic manufacturing capacity in the bus sector. It came as the Green Industrial Strategy failed to reference bus manufacturing He told her: "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." He added: Ministers must act with urgency and ambition to help keep these jobs and avoid a world-class manufacturer shutting its doors in Scotland." Deputy first minister Kate Forbes said:'Scotland has a high value, high quality manufacturing sector that supports 178,000 jobs across the country and accounts for more than half of Scotland's international exports. In 2023 it contributed £18.1 billion in GVA to Scotland's economy. 'Significant strategic work takes place across the public sector to achieve this investment in our manufacturing base: Scottish Enterprise helped create or safeguard nearly 5,000 manufacturing jobs in 2024-25. The latest EY Annual Attractiveness Survey results meanwhile show that Scotland secured its largest share of manufacturing inward investment coming into the UK in 2024 – securing more than a fifth all UK projects. 'Scottish Development International, the international division representing all three enterprise agencies, ensures inward investment is made in the best location with the appropriate support package to establish new business, jobs and opportunities in the country.' The Scottish Government said that Ms Regan did not specifically request data relating to the number of manufacturing jobs in Scotland created through public money. But it has been argued that publicly funded investment was cleared implied by the question.
BBC News
10-07-2025
- Climate
- BBC News
Herefordshire farmer says 'nightmare' summer worst since 1976
A farmer has described this summer as a "nightmare" and called it the worst for agriculture since 1976. Martin Williams, a third generation arable farmer in Fownhope, suggested 2025 could be a write-off for his farm. "It's burnt to brown, it looks like toast. It's all straggly and dead, and it's not really good for much at all," he said. In 1976, a peak temperature of 35.9C (96.6F) was registered in Cheltenham while a peak temperature of 34.9C (94.4F) has been registered in London in 2025. Mr Williams added: "I don't think we're going to get much of a crop off here if anything. "I hate to be the farmer who moans about the weather, and when the sun is out who wants to moan? But actually, it's been very difficult." He said: "You keep thinking it's going to rain tomorrow, it might rain next week but next week hasn't yet happened. "It's lovely to wear your shorts every day but unfortunately, if you're not selling ice creams every day and you're trying to grow crops it's not ideal." Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram.
