Bus Firm Challenges ScotZEB3 Funding Transparency
McGill's Buses Sues Scottish Government Citing Unfair Zero-Emission Grant Rejection and Transparency Issues
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Key Points
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McGill's had already secured ScotZEB funding in Phases 1 and 2, and its Phase 3 bid was aimed at purchasing 33 zero-emission Alexander Dennis buses, indicating an ongoing involvement with the fund beyond the current rejection.
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The ScotZEB3 package totalled £45m across five operators, with Ember receiving a substantial £13m to buy 100 Chinese electric coaches, highlighting a preference for expanding new services over fleet replacement in the distribution.
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Herald Scotland reports a competing figure for McGill's bid to Alexander Dennis, suggesting the proposal would have been worth £16m, a contrast to other reports that cited £4.3m, underscoring a lack of consistent figures around the bid value.
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Sandy Easdale characterised the decision process as being conducted by unnamed individuals in secret rooms and urged full transparency and accountability for how public money is allocated.
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Ralph Roberts, McGill's chairman, said the fund now appears to be used to support new competing services rather than replacing existing diesel fleets, raising questions about whether it is delivering on its stated aims.
McGill's Buses has launched a multi-million-pound legal challenge against the Scottish Government after its bid for zero-emission bus funding was rejected. The Greenock-based operator, owned by brothers James and Sandy Easdale, applied for £4.3 million under the Scottish Zero Emission Bus scheme's third phase — known as ScotZEB3 — to buy 33 electric buses from manufacturer Alexander Dennis, according to Glasgow Times.
McGill's has taken the case to the Competition Appeal Tribunal, arguing the government broke the law and demanding a fairer, more open process for handing out public money to bus operators. The £45 million ScotZEB3 fund was split across five operators, but McGill's says the way the money was shared was unfair and lacked transparency, according to Greenock Telegraph.
McGill's Legal Argument: Broken Law and Secret Decisions
McGill's says the Scottish Government broke the UK Subsidy Control Act 2022. That law sets rules on how public money can be handed out to businesses. The company argues no proper subsidy-control check was done before the funding was awarded to other operators, according to Glasgow Times.
Sandy Easdale, one of the owning brothers, was blunt about his frustration. He said the decision was made by unnamed individuals in secret rooms and called for full transparency. McGill's wants the entire scoring process for zero-emission subsidies to be opened up and reformed, according to Greenock Telegraph.
£13 Million to Ember: New Routes Over Old Diesel Fleets
The biggest single award in ScotZEB3 went to Ember, which received £13 million to buy 100 Chinese electric coaches. McGill's chairman Ralph Roberts said the fund now looks like a tool to support brand-new competing services — not to replace ageing diesel buses already on the road, according to Yahoo News.
Roberts argued this contradicts the scheme's core purpose. ScotZEB was meant to help existing operators swap out polluting diesel vehicles. McGill's had already received funding in Phases 1 and 2 of the scheme, making the Phase 3 rejection all the more striking, according to Greenock Telegraph.
Conflicting Numbers Add to Transparency Concerns
The exact value of McGill's bid is itself disputed. Most reports put the rejected funding bid at £4.3 million. But Head Topics notes a separate figure suggesting the full contract with Alexander Dennis could have been worth closer to £16 million, pointing to a lack of clear, consistent information around the bid.
That confusion over basic figures strengthens McGill's central complaint: that the process lacks openness. The company says taxpayers deserve to know exactly how £45 million in public money was scored and awarded. Transport Scotland has defended its ScotZEB3 allocation process, though McGill's dispute remains before the tribunal, according to Glasgow Times.
What Happens Next at the Competition Appeal Tribunal
The Competition Appeal Tribunal is the specialist UK court that handles cases involving competition law and subsidy control. McGill's wants the tribunal to overturn the funding rejection and force a reformed, transparent scoring system for future zero-emission bus bids, according to Greenock Telegraph.
The case puts real pressure on Transport Scotland to open up its decision-making. If McGill's wins, it could force a rethink of how Scotland awards green transport subsidies. That would have major consequences for all five operators who received ScotZEB3 money, including Ember and its £13 million award, according to Yahoo News.
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