After months of negotiations, the Scottish Government have announced their plan for a £4m furlough support scheme for workers at Alexander Dennis, a bus manufacturer that, until recently, had plans to close their facilities in Scotland.
Alexander Dennis announced in June 2025 that they would be closing their facilities in Scotland (Falkirk and Larbert) with the plan to consolidate their operations within Scarborough, Yorkshire.
This would mean the loss of 400 jobs in Falkirk and this in addition with the loss of 400 jobs in the neighbouring town of Grangemouth, and the closure of the Petroineos refinery plant, would have started to paint a very bleak picture of Scotland’s manufacturing sector.
The Scottish Government, after months of negotiations, announced their plan for a £4m furlough scheme on First Minister John Swinney’s visit to the Falkirk site on 15 September 2025.
Swinney explained that this furlough scheme, which will last 26 weeks, is “intended to act as a bridge to a sustainable future for the company in Scotland”. The Government will support the workers with this furlough long enough for Alexander Dennis to bring manufacturing back online.
This scheme, initially voted on by trade unions, had received 85% support from unions such as Unite, with the General Secretary calling the furlough a “very positive development” which they support.
Secretary of State for Scotland Douglas Alexander stated that the UK Government had “been leading intensive work with partners, including the Scottish Government” to encourage the furlough scheme.
However, Paul Davies (President and Managing Director) made no mention of the UK government’s involvement in his announcement, instead praising the Scottish Government’s support in keeping their sites open and operational.
While this is positive news for the workers and a win for the Scottish Government, this furlough scheme’s effectiveness will ultimately be judged on the future of Alexander Dennis in Scotland.
Image by Matthew Tosh licensed under the Creative Commons Attribution 2.0 Generic license.