McGill's legal challenge over ScotZeb3 funding
Analysis based on 9 articles · First reported Jul 11, 2026 · Last updated Jul 13, 2026
The legal challenge introduces uncertainty around the ScotZeb3 funding allocation and may delay or alter future zero-emission bus subsidies in Scotland. Alexander Dennis, which was expected to benefit from McGill's bid, faces continued uncertainty regarding orders.
McGill s Bus Services, owned by billionaire brothers James and Sandy Easdale, has filed a legal claim with the United Kingdom — Competition Appeal Tribunal against the Scotland — Scottish Government and Scotland — Transport Scotland after being rejected for £4.3 million in funding from the third phase of the Scottish Zero Emission Bus Challenge Fund (ScotZeb3). McGill's had planned to use the funds to purchase vehicles from Alexander Dennis, a struggling bus manufacturer, to support Scottish jobs. The company argues that the funding process breached the UK Subsidy Control Act 2022 and lacked transparency, as the largest award of £13 million went to Ember to buy Chinese electric coaches for network expansion rather than replacing diesel fleets. McGill's seeks to overturn the decision and reform the allocation process. The Scotland — Scottish Government has declined to comment due to ongoing legal proceedings.
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