SNP £2 bus fare cap punches ‘significant hole’ in ScotRail budget as passengers ditch trains

MSPs have been warned the policy could cost the publicly-owned rail network as much as £20m a year in lost revenues.

A £2 cap on bus fares introduced by the SNP Government has “punched a significant hole” in ScotRail’s budget as passengers ditch trains.

MSPs have been warned the policy – which is already in place across the Highlands and Greater Glasgow – could cost the publicly-owned rail network as much as £20m a year in lost revenues.

ScotRail managing director Joanne Maguire revealed the northern pilot had already cost the operator an estimated £750,000 in lost revenue in one year – about 12 per cent.

But that could figure could rise to £20m if the same impact was felt across Strathclyde area.

Maguire also revealed that there had not been any discussions had with the Scottish Government about an increase in funding for ScotRail.

Bus networks outside of Edinburgh are all privately operated but run to timetables and fare systems set by local authorities

Paul Shaw, of the Get Glasgow Moving campaign, said the fare cap was taking “money directly from a public operator and giving it straight to McGills, First and Stagecoach. This is why franchising was needed first to regulate the fares.”

David Green, Lib Dem MSP for Caithness, Sutherland and Ross, said: “The £2 fare cap is making a real difference to people across the Far North who rely on the bus, and I want to see it succeed.

“But our railway and our buses should be working together to offer more choice, more connected services for passengers not forcing them into a race to the bottom.

“These figures suggest that the SNP’s policy decisions have punched a significant hole in ScotRail’s budget. If the policy were expanded to other areas, that blackhole could deepen.”

“I’m worried that if these consequences are not properly addressed ScotRail will start to contemplate service cuts. That would be the worst of all worlds for my constituents who rely on already infrequent public transport.”

ASLEF, which represents train drivers, said it had welcomed the bus fare cap but had “concerns” about over it would impact the rail industry

Kevin Lindsay, the union’s Scottish organiser, said: “Addressing this requires an integrated ticketing system and lower fares for both train and bus travel.

“ASLEF has consistently said that linking public transport ticketing and making travel integrated and affordable would benefit the travelling public, the wider economy and meeting our climate targets by encouraging people to switch from cars to trains and buses.

“Focusing only on a £2 cap on bus fares is an unbalanced and narrow approach that will have unintended consequences. Not least because this policy is also laced with a large dose of corporate welfare given so many bus companies are privately owned.

“This raises concerns that using the taxpayer supplement could be abused to enhance the profiteering of private owners, detrimentally impacting the publicly owned ScotRail.

“The Scottish Government should review this policy as a matter of urgency, protect our publicly owned train company, integrate ticketing, and reduce fares for both train and bus travel.