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Scotland’s Rail Dilemma: Missed Targets, Missed Opportunities, and a Funding Rethink

Scotland’s Rail Dilemma: Missed Targets, Missed Opportunities, and a Funding Rethink
photo: A ScotRail Class 43 by David Bremner / CC BY-SA 2.0 / Wikimedia Commons/ScotRail
22 / 04 / 2025

From postponed decarbonisation to a scrapped peak fare trial, Scotland’s rail strategy is facing criticism. Unions push for green bonds as a solution to ageing trains and rising costs.

Scotland’s ambitious rail decarbonisation plans have hit the brakes, with key targets postponed by up to a decade amid mounting criticism over funding models and missed policy goals. Back in December 2024, Transport Secretary Fiona Hyslop confirmed that the Scottish Government’s pledge to phase out all diesel trains by 2035 has been pushed back to 2045—one of several major transport delays under the SNP administration.

As reported by The Scotsman, the shift follows similar delays to the A9 dualling project and cycling uptake targets. Although the 2020 plan was described as "dynamic" and subject to change, critics argue the move reflects a worrying pattern of retreat on climate promises.

According to Transport Scotland, the revised approach is due to budget constraints and logistical challenges, including the need to stagger electrification to minimise passenger disruption. Hyslop acknowledged the government is now looking into interim replacements for ageing diesel fleets, with the possibility of acquiring second-hand or hybrid trains to operate into the 2040s.

Green Bonds Touted as Cost-Saving Alternative to Private Finance

As the cost of rolling stock replacement looms, a new report commissioned by rail union Aslef is calling for green government bonds to finance the procurement of new trains. The study, conducted by academics at Glasgow University, estimates that Scotland could save up to £362 million by ditching private finance in favour of public borrowing.

According to Professor Andrew Cumbers, the savings for just the next order of suburban trains could reach between £144m and £362m, depending on the financing model. He argues that these savings could instead be used to lower ticket prices, invest in local infrastructure, and create new jobs.

Kevin Lindsay, Scottish organiser for Aslef, said the current reliance on rolling stock companies and PFIs results in significant profits for private entities, much of which leaves the industry entirely. "It’s time to reject this failed model and use public financing tools like green bonds to keep funds within the system," Lindsay stated, advocating for reinvestment into services, staffing, and fare reduction. Aslef sees this approach as aligned with Scotland’s net-zero goals, pushing for a model of public rail investment that supports long-term sustainability rather than short-term shareholder returns.

Peak Fare Trial Axed Amid Claims of Poor Promotion

Another high-profile initiative—the trial abolition of peak fares—has also come under fire. The Scottish Government launched the year-long scheme in October 2023, hoping to encourage modal shift from car to rail. However, by September 2024, the trial was terminated after achieving only a 6.8% increase in ridership, falling short of the 10% goal.

As reported by The Times, unions from RMT and Aslef blamed the shortfall on the government’s failure to properly promote the scheme. They accused officials of running a "stealth" campaign due to fears of overcrowding. RMT leaders also pointed out that many passengers were unaware the offer existed until it had already ended.

Transport Scotland defended the decision, citing limited results and high costs—around £40 million annually. They suggested that future fare reforms would depend on increased financial support from Westminster. However, the move to reinstate peak pricing has prompted backlash, especially as fares on key routes such as Glasgow to Edinburgh have surged to £32.60.

Public opinion appears broadly supportive of scrapping peak fares, with critics warning that the reversal may undercut efforts to promote public transport use and reduce emissions.

Alcohol Ban Continues to Divide Passengers and Politicians

Meanwhile, another unresolved policy—the ongoing ban on alcohol consumption on ScotRail services—has been branded "unenforceable" by union officials and a growing number of politicians. First introduced as a temporary COVID measure in 2020, the policy remains in place, even as other pandemic-era restrictions have been lifted.

Appearing before the Holyrood transport committee, RMT’s Gordon Martin described the alcohol ban as being "widely ignored" by passengers and impossible to police. Aslef’s Kevin Lindsay noted that while Transport Secretary Fiona Hyslop is "listening" to concerns, there is still no timeline for a review. The Daily Record pointed out concerns that the ban not only affects passenger experience but deprives the nationalised ScotRail of additional revenue, particularly on mainline services where onboard alcohol sales were previously a source of income.

A Scottish Government spokesperson acknowledged mixed views on the issue, particularly regarding safety for women and girls. While reaffirming that passenger safety is a priority, ministers continue to deliberate on when and whether the ban will be lifted, with no firm decisions expected before the next Holyrood election in 2026.

Sources: The Scotsman; The Times; The Daily Record

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