Scottish bus manufacturer Alexander Dennis has blamed unfair competition after announcing plans to shed 160 workers.

The company, a subsidiary of US-based NFI Group, employs 1,950 employees and apprentices across eight sites across the UK including Larbert.

It said “various government policies” were creating an “uneven playing field’ between British and foreign rivals.

Paul Davies, president and managing director, said that government funding has “effectively incentivised” competitors to buy from lower-security economies.

The manufacturer said it had been forced to cut jobs despite record levels of funding for zero emission buses being made available from both the UK Government and the Scottish Government.

It said the UK lacks measures seen available in other countries to promote domestic manufacturing. It adds that the Subsidy Control Act 2022 prevents local authorities from granting subsidy “that gives any additional consideration or weighting to domestic manufacturers over any non-domestic provider”.

On top of this, manufacturers receiving funding from the Scottish Government are at a “disadvantage” by adhering to the Fair Work First standards which are not a requirement of companies in other countries.

The statement continued: “Neither are bus operators incentivised or rewarded for choosing companies that meet Fair Work First standards when funding is awarded.

“This not only puts domestic manufacturers at further competitive disadvantage, but also undermines the value of this flagship policy as government-funded work is shipped offshore.”

The company claimed it “has repeatedly voiced concerns” about the uneven playing field that exists for UK bus manufacturers.

Mr Davies said: “We are deeply disappointed that the ongoing effect of various government policies is now threatening some of these jobs.

“Competition in itself is healthy, but when taxpayer money is spent with little domestic industrial, economic or employment benefit and bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field.

“While our statutory consultation has commenced, we will continue to do everything we can to save and protect as many jobs as possible. We will continue our dialogue with governments to identify potential solutions to level the playing field, strengthen our industry and drive investments in local jobs and domestic supply.”

Scottish Conservative shadow transport minister Graham Simpson said: “This is another hammer-blow for the area on the day that the Grangemouth redundancies have been announced.

“The potential loss of 160 jobs off the back of more than 400 being lost at the refinery will be devastating on the local economy.

“Scots rightly have concerns about China’s appalling human rights abuses and the SNP should ensure taxpayers’ money goes towards safeguarding jobs in Scotland wherever possible.”

Comment: Scotland finds it’s not easy being green