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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.

Scottish bus operator McGill's Buses has initiated legal proceedings to overturn decisions made under the ScotZEB3 programme, which funds zero emission bus deployments in Scotland. The challenge targets award outcomes from the third round of the Scottish Government's zero emission bus scheme. Route One reports the operator is contesting the allocation process, though specific award values and affected routes have not been disclosed.

Why it matters: Legal challenges to public procurement decisions can delay zero emission bus rollouts and create uncertainty for vehicle manufacturers and charging infrastructure suppliers bidding on future Scottish transport electrification tenders. The outcome may influence how Transport Scotland structures subsequent funding rounds and evaluates competing bids.