Coronavirus: Funding for rail services extended

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A ScotRail train is pictured in a station as commuters disembarkImage source, PA

Emergency funding to help Scotland's rail services cope with the impact of coronavirus is to be extended.

Both the ScotRail and Caledonian Sleeper franchises have seen passenger numbers decline sharply since lockdown began in March.

The current six-month support package has cost an estimated £250m.

Scottish ministers have now extended this Emergency Measures Agreement (EMA) to January, at an expected cost of £100m.

Michael Matheson, cabinet secretary for transport, said the move would ensure rail services continue and provide stability for railway employees.

Despite the easing of lockdown restrictions, ScotRail's passenger numbers remain 70% down year-on-year even though the number of services it operates has returned to near normal levels.

The level of support given by the Scottish government reduces in line with any increase in revenue ScotRail generates.

However, under the terms of the EMA, franchise operators Abellio and Serco are both entitled to "management and performance fees" of up to 2% if performance targets are met.

Ensure stability

Mr Matheson said talks over a longer term plan for the franchises will begin shortly.

He said: "The EMA temporarily varied the franchise agreements in order to minimise disruption to rail passengers and employees during the Covid-19 outbreak.

"Given the extremely challenging budgetary position and the current uncertainty as to consequential from the UK government, the agreements will be in place until January 2021.

"This will ensure rail services continue and also provide stability for employees, passengers and suppliers at a time of unprecedented uncertainty."

Alex White, ScotRail's chief operating officer, added: "Extending this essential government support scheme is a major boost for ScotRail staff, who have worked tirelessly to keep people moving during the recent critical months.

"The level of job security provided to ScotRail staff means we can continue to deliver a vital service for those tackling the pandemic and support the economic recovery."