Bus fare cap in greater Glasgow could cost ScotRail £20m, MSPs told

The £2 bus fare cap in the greater Glasgow area could cost ScotRail as much as £20 million, MSPs have been told, as passengers jump from train journeys.

The Scottish Government extended the cap to the area covered by the Strathclyde Partnership for Transport, which includes Glasgow, Lanarkshire and Ayrshire, following a successful trial in the Highlands and Islands.

Appearing before Holyrood’s Transport Committee, ScotRail managing director Joanne Maguire said the northern pilot cost the Government-owned operator an estimated £750,000 in lost revenue in one year – about 12%.

If the same impact was felt in the Strathclyde area, the drop could be as much as £20 million, Ms Maguire said.

“But what we need to focus on is what is within our control,” she said.

“So, pushing the value for money message around peak fares (being) gone for good, kids for a quid and in Strathclyde we are very competitive on journey time, which our commuters will absolutely pay (for).

“They want to stay at home as long as they can in the morning and get back home as quickly as they can.”

Maguire said it was “very early days” in Strathclyde, where the fare cap came into force in early September, but added ScotRail was “not seeing a significant impact” as a result.

“I think it was only a couple of weeks ago that the marketing campaign began in earnest and we know that the bus cap will roll out in Aberdeen from April 1 next year, so we are going to be monitoring closely but it is very early days for us to pass any form of judgment.”

Under questioning from committee convener Willie Rennie, Ms Maguire added that there had not been any discussions with the Scottish Government about an increase in funding for ScotRail.

“I think for us at ScotRail, our focus is on driving value for money and doing everything we can to drive our passenger journeys up and drive revenue up,” she said.

Scottish Lib Dem MSP David Green said the bus cap is “making a real difference across the far north” but pushed for action to fill any black hole in the ScotRail budget.

“These figures suggest that the SNP’s policy decisions have punched a significant hole in ScotRail’s budget,” he said.

“If the policy were expanded to other areas, that black hole 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.”

A spokesman for Transport Scotland said the Government expects “travel patterns to evolve” and will monitor any changes.

“The Scottish Government wants more people to travel by public transport,” the spokesman said.

“The £2 bus fare cap is one of a number of measures supporting households with the cost of living.

“These also include the permanent removal of ScotRail peak rail fares and continuing to provide free bus travel for under-22s, over-60s and disabled people.

“As with any significant change to fares, we expect travel patterns to evolve and we are monitoring impacts across the transport network, including on rail services.

“The recently published outline business case for the Strathclyde scheme considered potential interactions between bus and rail, and we will continue to monitor the impact of the £2 bus fare cap on patronage, modal shift, affordability, connectivity and wider transport behaviours.”