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Falkirk-based bus manufacturer Alexander Dennis said 160 Scottish jobs are at risk as the result of an "uneven playing field" in the sector.

The firm said it has launched a consultation process due to government zero-emission bus funding "disproportionately benefitting" foreign competitors with lower labour costs.

The company, owned by a Canadian parent firm, employs 1,950 people in the UK, with its biggest plant in Larbert, plus a UK supply chain employing a further 6,350 people.

The firm is calling for higher import duties on electric buses, so that it can compete with the higher pay and better conditions required under government contracts which help bus operators replace their fleets in the UK.

The company's president Paul Davies said: “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."

He added that the firm would "continue to do everything" to save and protect as many jobs as possible.

He said: "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.”

The union Unite said the announcement was "deeply alarming".

Industrial Officer Pat Egan said: "Be in no doubt that the impact on the workforce and the local community will be huge.

"We are demanding meetings with the company and the Scottish Government to explore all avenues which can protect jobs.

"Because if Scotland wants to promote bus travel and achieve lower carbon emissions then we need a manufacturing base capable of delivering these objectives.”