UK Bus Manufacturing

John Milne Excerpts

Tuesday 27th January 2026 Westminster Hall

[John Milne (Horsham) (LD)]

It is a pleasure to serve under your chairmanship, Dr Murrison. I, too, thank the hon. Member for Falkirk (Euan Stainbank) and the hon. and learned Member for North Antrim (Jim Allister) for bringing this important industry to the attention of the House.

The latest figures tell us that just 17% of buses used in the UK are manufactured here, which of course means that 83% come from abroad. Those figures are very much the wrong way round. What can we do to reverse them?

A number of trends have come together to make what was always a challenging market much more difficult. In particular, we have seen the shift to low emission vehicles on environmental and pollution grounds. That has created a major inflection point in the market. It is an opportunity for companies if they can get ahead of the curve—a chance for them to displace established players—but potentially a major setback if other companies get there first. In this sector, the competitive advantage clearly lies with Chinese manufacturers.

Research published in 2024 by the professional services firm KPMG on the economic impact of local bus services found that the sector invests over £180 million each year in UK buses. KPMG also estimates that around 53,000 people are indirectly employed through the industry’s supply chain, including those working for manufacturers, fuel suppliers, maintenance, parts companies and technology providers. That amounts to a major contribution, both to the economy and of course to employment.

However, the only solution to a long-term strategic problem lies in a long-term strategy. Under the previous Government, there was no industrial strategy worthy of the name. One arm of Government did not seem to know, or care, what another was doing. The need for environmentally friendly forms of public transport was clear a long time ago, but the move towards such transport and the subsidies to support it seems to have been carried out in isolation from policy relating to UK manufacturing. The Liberal Democrats welcome the present Government’s move to a more strategic approach, and I hope the Minister will tell us more about those plans today.

As Liberal Democrats, our approach would be, first, to establish a comprehensive industrial strategy in partnership with business, civil society, including trade unions and academia. Secondly, we would ensure that the principles of tackling the climate emergency, boosting living standards, spreading prosperity everywhere in the UK and growing the economy are at the heart of that strategy. Thirdly, we would seek to provide a strategic framework for effectively addressing the needs of economically disadvantaged remote or rural areas by collaborating with local, regional and devolved authorities in England, Scotland, Wales and Northern Ireland.

Fourthly, we need to work towards four key business priorities: a positive business climate; leveraging technology to supercharge the green economy; empowering small businesses to create prosperity in local communities; and boosting trade. Finally, we need to enable businesses to achieve these priorities by enabling the workforce of tomorrow with a training and apprenticeship programme, investing in key infrastructure, scaling digital innovation and technology adoption, and creating financial markets that work for all businesses.

Although the solution has to be long-term, there is the short-term challenge of keeping the bus industry that we already have afloat in the meantime. The businesses at Wrightbus and Alexander Dennis play a key role in their local economies, as we have heard from the local Members. I hope that the Minister will give us an idea of how we can bridge the gap between what has worked until now and how we need to operate in the future. We have a fantastic workforce and an amazing history in automotive manufacturing. Let us make sure that the industry continues to prosper in the future.