McGill's Buses takes Scottish Government to tribunal over rejected £4.3 million zero-emission bus funding

McGill's Buses, owned by Sandy and James Easdale, has filed a legal challenge with the Competition Appeal Tribunal after the Scottish Government rejected its £4.3 million funding application for 33 zero-emission electric buses from Alexander Dennis. In March 2026, Transport Scotland awarded £45 million from the Scottish Zero Emission Bus Challenge Fund Phase 3 to Ember, Stagecoach, Rock Road, Lothian and First Bus, with Ember receiving the largest share of £13 million for 100 Chinese electric coaches. McGill's alleges the government breached the UK Subsidy Control Act 2022 by failing to conduct a separate subsidy control assessment and by funding new competing routes rather than fleet upgrades.

Why it matters: The tribunal case could reshape how Scottish zero-emission bus subsidies are allocated and scored, potentially affecting future procurement rounds and the balance between incumbent operators upgrading fleets and new entrants launching services. The challenge also highlights tensions over domestic manufacturing support, with McGill's proposing Alexander Dennis vehicles while the largest award went to Chinese coaches.