Furlough funding fury: Falkirk area bus builder forced to foot the bill after Holyrood 'U turn'

Back in 2025 the bus manufacturing company announced plans to close its facilities in Camelon and Larbert – which would have resulted in 400 jobs being axed – and move production to the north of England.

Then in September that year, First Minister John Swinney confirmed financial support would be available, if the firm could provide "evidence of sufficient orders to sustain its operations in Scotland" and would keep its Scottish sites open.

Eighty per cent of the rescue package – which was to act as a financial bridge to pay staff wages while the company awaited new vehicle orders and worked to make its Scottish operations sustainable – was supposed to be funded by the Scottish Government, while ADL would fund 20 per cent.

However, in March this year ADL proposed to close its Camelon plant and convert its Larbert site to chassis manufacture with the potential loss of 115 jobs.

The Scottish Government said it was disappointed the firm had failed to meet the terms of the funding pledge, which depended on the firm securing a minimum number of orders and bus manufacturing jobs in Scotland.

It was stated the Scottish Government was continuing “constructive discussions” with ADL in an effort to “protect jobs and keep skilled manufacturing in Scotland”.

ADL was also said to be “deeply disappointed” it would have to “absorb the full cost” of the furlough scheme after it expected financial support from the Scottish Government.

Falkirk MP Euan Stainbank accused the Scottish Government of “failing workers” at ADL.

He said: “Scotland needs an industrial strategy that puts Scottish jobs first, this hasn’t happened in this instance. John Swinney's government has lost the confidence of the sector by failing to support buses built in Scotland.

"After all the big talk from the Scottish Government on supporting Scottish jobs – and John Swinney telling workers he had their backs – it has once again failed workers by using taxpayer money to support Chinese jobs and Chinese businesses over ones at home.

“The jobs at Alexander Dennis are vital to Falkirk’s economy, and the people working them need to be able to rely on their government to back them.

“We need Scottish Government, UK Government and the company to work together to support workers, commit to building buses in Scotland and secure a pathway back to bringing orders back to Scotland.”

His Labour colleague, Grangemouth MP Brian Leishman added: “SNP promises rarely materialise, and this is another sad example. The truth is that Alexander Dennis was set up to fail in this arrangement, especially when SNP Ministers decided to push ahead with the £45 million ScotZEB3 initiative, which meant electric buses being ordered all the way from China, instead of securing orders for the Falkirk and Larbert facilities.

“Now they have the brass neck to point at the manufacturer for not securing a minimum number of orders. They also tried to blame UK Government subsidy rules to shift responsibility.

“Remember Andy Burnham, as the Mayor of Greater Manchester, previously supported Scottish manufacturing by buying Scottish buses. If he could then so could the Scottish Government.”