Caledonian Sleeper goes back into public ownership

The Caledonian Sleeper rail service has been formally taken over by the Scottish government.

Ministers decided last year to nationalise the rail franchise and terminate Serco's contract seven years early.

The Scottish government said it was looking to build on the Caledonian Sleeper's recent increase in passenger numbers.

Unions have welcomed the service being taken into public ownership.

The move comes after ScotRail was last year returned to public ownership for the first time in 25 years.

• Caledonian Sleeper rail service to be nationalised

• Caledonian Sleeper contract to end seven years early

• ScotRail goes back into public ownership

The current sleeper franchise was awarded to Serco in a deal worth £800m and had been due to run from 2015 to 2030.

The decision to end Serco's contract came after the company tried to renegotiate the deal through a "rebase clause", to put the loss-making service on "a more sustainable financial footing".

Transport Minister Fiona Hyslop said the decision to take the service into public ownership came amidst "substantial uncertainty regarding future market conditions and the pace and impact of the UK government's rail reform process".

She added: "In recent years, the Caledonian Sleeper has flourished, with increasing numbers of people using its unique journey opportunities.

"The service plays an important role in showcasing the best of Scotland and I look forward to building on that success in the years to come."

Mick Lynch of the RMT has called on the Scottish government to increase investment in rail services

The sleeper service, which has been operating in various forms since 1873, runs overnight trains between Scotland and London.

There is a Lowlander route between London and Glasgow and Edinburgh, and a Highlander route to Aberdeen, Inverness and Fort William.

RMT general secretary Mick Lynch said: "With all of its rail passenger services now in public ownership, the Scottish government needs to commence the long-awaited national conversation on rail without delay.

"At the heart of this must be investment in expanding and improving services, ruling out cuts to ticket offices and properly staffing Scotland's railway to make it accessible for all."