Public is now pay ing £32m per month for ScotRail
THE cost to the public purse of operating Scotland’s trains has soared – while fares increase and performance has slumped.
Public subsidies handed to ScotRail hit a new high last year, Dutch operator Abellio’s company accounts show.
ScotRail received an average monthly subsidy of £32.2million last year, compared to £24.7million a month in the previous year.
The rise was revealed as passengers face higher fares from today, with the cost of most peak tickets increasing by 2.8 per cent, and off-peak fares going up by 1.8 per cent.
The increases mean a peak return from Edinburgh to Glasgow, Scotland’s busiest route, will rise from £25.50 to £26.20, while an annual pass will cost £4,200, which is £116 higher than before.
The higher prices come amid concern about ScotRail continuing to miss key punctuality targets. Scottish Labour transport spokesman Colin Smyth said: ‘The Abellio franchise has been a shambles from the day the SNP handed the Dutch firm the keys to Scotland’s railways.’
Abellio’s accounts show the public subsidy received last year was £482.8million, compared to £296.6million the previous year.
However, last year’s accounts covered the 15-month period to the end of March 2019, whereas the previous year covered only the 12-month period to the end of December 2017. This means that the monthly average subsidy was £32.2million in 2018/19, compared to £24.7 million in 2017.
Accounts also showed that Abellio ScotRail suffered a £10million loss last year. Yet income from passengers soared by nearly £100million to £445.3million.
Last month, SNP ministers announced they will terminate the ScotRail franchise three years early, in 2022. They intend to work up a public sector bid for the contract to run services.
A spokesman for Abellio said: ‘This latest year is a 15month period, rather than 12 months, and Network Rail charges have gone up by £150 million, so the subsidy has remained more or less stable over the two years in question. Also, ScotRail is providing 23 per cent more capacity at 20 per cent less cost.’
Transport Scotland said: ‘These payments include the various increases for fixed track access charges which, in turn, are paid straight to Network Rail. This is something we have been open and transparent about.’
Fare rises first announced in August will take effect across ScotRail services from today.
Peak fares – anytime singles or returns, flexipasses and season tickets – will rise by 2.8 per cent, in line with the retail price index (RPI) inflation figure from last July.
Regulated off-peak fares are capped at 1 per cent below RPI, meaning off-peak fares will rise by 1.8 per cent.
ScotRail said 85 per cent of its income comes from fares regulated by the Scottish Government, and the average fare rise for all services is 2.4 per cent, which is lower than a 2.7 per cent UK average rise.
A ScotRail spokesman said: ‘The money generated from fares is reinvested back into Scotland’s railway.’