MSPs have called for immediate action from the Scottish and Westminster governments to save bus manufacturing in Scotland.

Up to 400 jobs were put at risk last month when Alexander Dennis Ltd announced the end of production at Falkirk and Larbert — communities already reeling from the loss of the Grangemouth oil refinery — to centralise operations in Scarborough.

Holyrood cross-party economy and fair work committee chairman Colin Smyth has written to both Finance Secretary Shona Robison and Scottish Secretary Ian Murray to demand action.

He told Ms Robison: “Ministers must act with urgency and ambition to help keep these jobs and avoid a world-class manufacturer shutting its doors in Scotland.”

The Scottish government had come under fire for procuring electric buses abroad, rather than supporting home manufacturing, but the First Minister argued the UK Subsidy Control Act prevented using procurement to deliver the orders needed to save the plants.

But writing to Mr Murray, Mr Smyth said: “The UK Subsidy Control Act does allow social value to be considered when evaluating bids, enables direct awards and permits some differential treatment.

“We therefore urge the UK government to use every lever at its disposal – particularly through procurement, investment, and industrial strategy — to help secure a future for bus manufacturing in Scotland and protect these skilled jobs.”

Mr Murray responded: “The UK government’s Industrial Strategy commits to further use the government’s procurement power to strengthen domestic supply chains and support good quality local jobs.

“While procurement is a devolved issue in Scotland, this does create further opportunities.”

Ms Robison said: “The Scottish government continues to work at pace and in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the UK government.”