MSPs want radical action to save Alexander Dennis jobspublished at 12:57 British Summer Time 12 June

12:57 BST 12 June

David Wallace Lockhart
Political correspondent

Job losses at Alexander Dennis have been brought up by a number of MSPs.

John Swinney is stressing that he understands the concerns, but indicates that his hands are somewhat tied by UK-wide rules around subsidies (in place to protect competition).

Mr Swinney indicates that he's going to raise this issue with the UK government.

But it's clear that a number of MSPs, including some on SNP benches, want to see radical action to try and save these jobs.

The Falkirk West MSP Michael Matheson brings up Alexander Dennis again, saying the last thing workers need is for their employment to be "turned into a political football".

He calls on the Scottish and UK governments to work together on the issue, and asks the first minister to raise "maximising the potential for orders across the UK for ADL" and to address the "uneven playing field" regarding competing with overseas manufacturers - a situation caused by the subsidy control act, he claims.

Swinney says these issues are being explored by the government.

Tory MSP Graham Simpson says the problems with the act have been known for years, and questions why it hasn't been looked at until now, to which Swinney replies that it was legislated for by Conservative governments at Westminster. He reiterates he is looking at working around the issue.

Arguments persist over funding arrangementspublished at 12:49 British Summer Time 12 June

12:49 BST 12 June

David Wallace Lockhart
Political correspondent

A helpful backbencher question allows the first minister to give his view on the UK government’s spending review, which took place yesterday.

The first minister says the Scottish government is getting less of a funding rise than the average across UK government departments. He argues they’re being shortchanged by around £1.1bn.

But UK ministers point out that the Scottish government is getting record levels of funding.

Funding disagreements can be complex. Both the Scottish and UK government positions can be true, but that doesn’t mean that arguments won’t persist

How Spending Review will shape Scottish priorities for years to comepublished at 12:46 British Summer Time 12 June

12:46 BST 12 June

Douglas Fraser
Scotland business & economy editor

Image source, Reuters

Increased spending for Scotland on defence, computing and the development of carbon-capture technology have been promised in the chancellor's Spending Review.

Rachel Reeves has found £250m for the Royal Navy's nuclear submarine base on the Clyde, £750m to bring the most powerful supercomputer in the UK to Edinburgh, and funding for the Acorn Project in St Fergus.

Acorn would take greenhouse gas emissions and store them under the North Sea, in a process known as carbon capture and storage (CCS).

The news came as Reeves announced the budgets for all UK government departments over the next few years.

Read more here.

Andrew Picken
BBC Scotland News

Image source, North Sea Midstream Partners

Holyrood's budget will rise by £2.9bn a year on average as a result of Chancellor Rachel Reeves' spending review, according to Treasury officials.

Reeves said block grant funding from Westminster would rise to £52bn by 2029, the "largest settlement in real since devolution was introduced".

Setting out the UK's first multi-year spending review since 2021, she also confirmed investment in defence, carbon capture and computing projects.

But Scotland's Finance Secretary Shona Robison claimed her government had been "short changed" by more than £1bn, with a block grant increase which is smaller than the overall rise across UK government departments.

Read more here.

SNP MSP Kenneth Gibson brings up yesterday's spending review at Westminster by the chancellor Rachel Reeves, and asks what impact it will have on Scotland.

Swinney uses this to say Scotland is facing worse real- growth than UK departments, and it should have more than £1bn.

Gibson brings up the UK economy decreasing by 0.3% today, which he blames on the increase in national insurance contributions - which he dubs a "blatant jobs tax" and "economic mismanagement".

Scotland is being short-changed", he adds.

The first minister repeats that real-term growth will be 0.8% a year, less than UK departments - this illustrates "the scale of the challenge" facing the Scottish government, and that the UK is "not providing sustained investment needed", he concludes.

Swinney 'slightly uncomfortable' over buses questionpublished at 12:45 British Summer Time 12 June

12:45 BST 12 June

David Wallace Lockhart
Political correspondent

Anas Sarwar focuses on potential job losses at bus manufacturer Alexander Dennis. He accuses the Scottish government of relying on buses made in China.

John Swinney points out most are bought by private operators, but Mr Sarwar hits back saying that the Mayor of Greater Manchester, Andy Burnham, has been purchasing Scottish buses.

Swinney does point out that Alexander Dennis gets more orders for zero emission buses in Scotland than any other manufacturer.

Anas Sarwar also has a dig about a Herald story that suggested some SNP figures had met to discuss Swinney's leadership. It all gets a bit personal, and slightly uncomfortable for the FM.

Although there are a few newspaper stories along these lines, it doesn't feel like the first minister's leadership is under any great pressure, even after the SNP failed to win last week's Holyrood by-election in Larkhall, Hamilton and Stonehouse.

The Scottish Greens co-leader accuses the Labour UK government of "balancing the books on the backs of the poorest".

The UK government could have scrapped the "cruel two-child benefit cap" but they did not, she says.

Slater asks if the FM agrees that Keir Starmer should spell out the conditions that would trigger an independence referendum so "we could get out of this unequal union".

John Swinney, not surprisingly, agrees that he should.

Fairly predictable back and forth on tax and spendingpublished at 12:39 British Summer Time 12 June

12:39 BST 12 June

David Wallace Lockhart
Political correspondent

FMQs opened with a fairly predictable back and forth on tax and spend.

The Scottish Conservatives press John Swinney on what they call an "economic performance gap" (which they say leaves a gap of £1.1bn per year). Russell Findlay is essentially accusing them of wasting public money, and he accuses the SNP of being anti-business.

The first minister hits back saying that Scotland has experienced better economic performance than rest of the UK, and is making superior progress on issues like child poverty.

There's a challenge from the Tories to bring down taxes, but that's not something Swinney takes them up on.

The opening of FMQs is largely an ideological clash on the economy, with both party leaders on comfortable ground.

The FM stresses the importance of ensuring kids do not go hungry.

The programme has been expanded to primary six and seven pupils who qualify for the Scottish Child Payment, he explains.

He adds that the government is taking forward pilot exercises for secondary pupils that were the subject of constructive dialogue during the budget negotiations.

It's now the turn of Lorna Slater to put her questions to the first minister.

The Scottish Greens co-leader calls on the first minister to extend free school meals to all council areas in Scotland "to ensure that no kid goes hungry in School".

Sarwar is unimpressed by Swinney’s reply, calling it “rather weak”. He returns to the Scottish government procuring buses, ferries and steel from other countries, claiming this is weak leadership” from the first minister and an attempt to “manufacture grievance”.

Andy Burnham, the Greater Manchester mayor, ordered far more buses from Alexander Dennis, he says.

All the Scottish government offers is “waste and incompetence” he says, going on to bring up media reports that senior party figures have been critical of Swinney.

Swinney replies by saying he is focusing on helping the workforce at Alexander Dennis, before listing ways the government has helped the firm in recent years.

He then cites Paul Davis, the firm's president and managing director, as saying current UK policy does "not allow for rewarding local content, job retention and job creation. Swinney adds that he is trying to work through these issues, and is working with the UK government to help workers.

The first minister begins his response by welcoming Davy Russell to Holyrood, following the Hamilton, Larkhall and Stonehouse by-election last week.

Swinney goes on to say he is “deeply concerned” about the job losses, and has been focusing on it since first learning of the details.

He adds that the Scottish government has ed the company, including ordering more zero emissions buses from the company than any other firm, and that the government is doing all it can to help workers.

Image source, Alexander Dennis

Up to 400 jobs are at risk after a bus manufacturer announced plans to move operations to England.

Alexander Dennis, which has factories in Falkirk and Larbert, said it was considering moving manufacturing to a site in Scarborough.

The plans would see work at the Falkirk site discontinued, while the Larbert site would be closed after current contracts are completed.

The company said it was facing strong competition from Chinese electric bus manufacturers whose share of the market had risen from 10% to 35%.

Labour leader Anas Sarwar begins with a question about the job losses at the Alexander Dennis bus manufacturer, where 400 workers are at risk

Sarwar says the new was “not inevitable” and is “another result of SNP failure.

He demands to know why the SNP is procuring more buses from China than Scotland – and says the SNP “prioritise foreign workers” over Scots.

The first minister agrees that damage has been done to the economy to increase employers' national insurance contributions.

Swinney points out there has been a contraction of GDP down by 0.3%,

"The SNP waste money on an industrial scale," says Findlay.

He turns his sights on Labour and the Spending Review.

Finally, he asks if Swinney will bring down the tax burden.

The FM says Scotland has had a superior economic performance than the rest of the UK.

What benefits would Findlay cut?, asks Swinney.

He says the Scottish Tory leader wants to cut the Scottish Child Payment.

"I want to lift children out of poverty, Mr Findlay wants to consign children to poverty," he says.

"I'll just try and stop laughing for a minute," jokes Findlay.

"It's peak SNP denial."

The Scottish Tory insists the SNP has failed to keep up with the rest of the UK.

He says they have wasted billions of pounds on a national care service that doesn't treat patients, the endless CalMac ferry scandal, a £1bn prison with "bird and bat boxes" and an annual benefits bill that will soon top £9bn.

He adds that Swinney has "thrown all the money away".