UK Bus Manufacturing

Graham Leadbitter Excerpts

Tuesday 27th January 2026 Westminster Hall

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

It is a pleasure to serve under your chairship, Dr Murrison. I congratulate the co-chairs of the APPG, the hon. Member for Falkirk (Euan Stainbank) and the hon. and learned Member for North Antrim (Jim Allister), on securing the debate.

I like to think I have a bit of an affinity with buses. For my entire time at high school—three years at Oban high school and three years at Biggar high school—every school day started and ended on a bus, as it does for many living in rural communities. At the age of 15, I volunteered at Biggar’s Albion works as part of a Duke of Edinburgh’s award, and helped to restore an Albion lorry. Albion was, of course, one of Scotland’s first vehicle manufacturers, and that included the manufacture of many buses. I do not know whether anybody here is old enough to remember that.

Although Albion is sadly no more, Alexander Dennis has been manufacturing buses in Scotland for more than 100 years and provides significant skilled employment. In Scotland, we recognise the importance of bus travel. The SNP has put in place a number of measures to boost bus use, including an extensive bus pass system, which includes free bus travel for under-23s. It has had positive social impacts and gives young and old people access to vital services and to education, employment and social opportunities. Increased bus use means steady demand for new buses to replace or expand existing fleets, and higher demand means greater opportunity for manufacturers.

In my former role as council leader in Moray, I had the pleasure of being a signatory of the Moray growth deal, which included the m.connect scheme—a combination of massively expanded on-demand bus services and expanded scheduled services over a large geography. It is well supported and well liked by the public and, again, more services mean more buses.

However, there are serious challenges for bus manufacturers—notably from cheap foreign imports, especially from China—and that raises questions about the current procurement rules. The UK-wide Subsidy Control Act 2022 has prevented the Scottish Government from directly procuring from a single supplier, which puts avoidable strain on domestic bus manufacture.

Protecting skilled manufacturing in Scotland is critical to building our transition to a green industrial economy. That is why the Scottish Government committed £4 million to retain more than 400 manufacturing jobs at Alexander Dennis through a furlough scheme to protect crucial skilled workers until work can recommence. It was because of that collaboration and determination, and a shared belief in the value and the future of domestic manufacturing, that the Scottish Government and Alexander Dennis were able to negotiate that deal. But the obvious preference for the company, the Government and, most importantly, those workers is to have a steady stream of orders and no requirement for such a scheme.

There are several key things the UK can do to support bus manufacturing. The Subsidy Control Act needs reworking. As the hon. Member for Falkirk said, social value weighting needs to be ramped up. As a councillor, I argued very strongly for that for a wide range of contracts, and I continue to do so today. It is perfectly reasonable to place weighting on local supply chain content, quality assurance, apprenticeships and much more.

We also need to significantly tighten up certification of buses to ensure consistently high standards, especially on issues such as cyber-security. There have been multiple investigations in various countries into so-called kill switches in imported vehicles and other technologies, so that is clearly of critical importance.

There is a particular irony in trying to grow an electrically powered bus fleet in the UK by shipping buses in large numbers halfway around the world using heavy fuel-powered cargo ships. The green credentials of such procurement arrangements are highly questionable. The whole carbon impact of manufacture and delivery needs to be considered. Work also needs to be done by the Government and power distribution companies to ensure that grid connections for new charging installations are carried out in a timely way. Bus operators will not procure modern EV buses if they have nowhere to plug them in.

In conclusion, there are several actions the Government can take to support bus manufacturing and manufacturing more generally. That would also give public authorities and Governments across these islands more tools in the box to support procurement that drives growth and skilled jobs in our manufacturing sector, and ensures a future for these well-known, well-liked companies.

[Dr Andrew Murrison (in the Chair)]

I call the co-sponsor of the debate, Jim Allister.