Catherine McWilliam, nations director at the Institute of Directors in Scotland, was among those to highlight the cost of train travel with Scottish Government-owned ScotRail, putting this in a European context.
She said: “When benchmarked against the rest of Europe, Scottish rail performs poorly in terms of value and cost. ScotRail should be far more agile and creative in terms of initiatives to encourage passengers to use the rail service.”
Liz Cameron, chief executive of Scottish Chambers of Commerce, said: “The cost of rail travel remains a barrier. We need a more competitive and flexible pricing structure to accommodate the evolving working patterns and economic conditions. There is a need to also adopt a less confusing and much simpler pricing structure.”
The Scottish Government reintroduced peak rail fares from late September last year, having piloted their removal from October 2, 2023.
Its agency, Transport Scotland, calculated the cost of the full-year subsidy provided by the Scottish Government for the removal of peak fares by the time the pilot scheme ended on September 27 at about £40 million.
Stuart Patrick, chief executive of Glasgow Chamber of Commerce, said: “The removal of peak fare reductions was a significant setback in efforts to bring workers back to the office and increase footfall in the city centre.”
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Describing the peak fares removal pilot as “the only meaningful change following the pandemic”, he said the reinstatement of peak fares “has now become a barrier to economic recovery and presents a real barrier to increasing footfall in the city centre – something that remains a critical priority for our recovery”.
Ms McWilliam said: “The decision to return to peak fares was not welcome amongst IoD Scotland members and seems like a poor policy decision. Travellers had a very positive reaction to the reduced fares and credited this for the return of many workers to the office, leading to better collaboration and a more inclusive culture. It also brought more people back into city centres, increasing spending and having a positive effect on the economy.”
The Scottish Government estimated the pilot scheme to remove peak fares boosted demand for ScotRail services by around 6.8%. It had calculated that a 10% increase in demand for ScotRail services was required to ensure the cost of removing peak fares was paid for through the growth in rail travel generated.
Noting the overall growth in demand during the pilot scheme was only slightly more than three percentage points short of the target, Ms McWilliam said: “This can likely be partly attributed to a series of cancellations and strikes in the final few months of the pilot.
“Transport, and ScotRail, are ultimately a ‘public good’ and therefore it can be argued that cost and profit shouldn’t be the defining factor in decisions. Net-zero considerations and inclusivity for citizens across Scotland are equally, if not more, important.”
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Colin Borland, director of devolved nations at the Federation of Small Businesses, said: “You wonder what might have happened, when the peak fares pilot was running, if ScotRail and ministers launched a joint push with local businesses to promote the benefits of workers going back into the office, seeing colleagues, catching up over a swift post-work half, or popping into the local café or sandwich shop on their lunch break.”
Ms Cameron sees an opportunity for “private sector partnership” with ScotRail.
She said: “If we are serious about the transformation in the way in which our people are connected and goods are transported, it is right to consider whether the current ownership model should remain or whether it’s now time to see private sector partnership as an opportunity to attract investment and expertise.”
Mr Borland, for his part, believes public ownership of ScotRail “opens up opportunities to leverage such a valuable asset for the greater economic good”.
Ms Cameron called for “significant investment” in Scotland’s railway.
She said: “Whilst ScotRail, now under public ownership, has attempted to make positive improvements in areas of reliability and electrification, urgent action and faster decision-making is required to meet economic growth targets and net-zero demands.
“The needs of Scotland’s businesses and communities will only be met with a significant level of investment to transform the service to guarantee it is fit for the future.
Business leaders highlighted what they perceive to be major gaps in ScotRail’s service provision, both in terms of connectivity and frequency of services.
Ms Cameron said: “The Edinburgh-Glasgow corridor joins two major economies effectively but we still have gaps in connectivity to other city regions and rural areas. Questions have been raised on the decreasing availability of trains after working hours which makes it more difficult for retail, hospitality and leisure businesses to attract customers if public transport availability is seen as a barrier. Additionally, the cost of travel, which can be prohibitive especially with the removal of the peak fares reduction, is not helping to support a revival of footfall in our towns and city centres.
“For our rural areas, the lower frequency of trains is a concern. In some cases, it has the potential to push people to travel by car.”
She added: “Business also needs to see a plan to strengthen rail connections to airports like Glasgow, which is essential for supporting international business and tourism. This is an urgent economic issue which must start progressing at pace.”
Mr Patrick said: “The provision of services, particularly after the working day, remains critically below pre-pandemic levels, which has a profound impact on our night-time economy. Research into city-centre visitors has shown that 48% are seeking more affordable train fares, highlighting a strong demand for sustainable, accessible travel options to and from our city centre.
“Connectivity remains a key issue, with the long-anticipated rail link between Glasgow city centre and the airport still not progressing as expected. This critical connection continues to be a priority, and we are eager to help push this project forward to unlock its full economic potential.”
Ms McWilliam said: “Although the central belt in Scotland is relatively well served and several lines are electrified, there are clear examples of failures across the Scottish rail network, notably in rural Fife and across the Highlands and Islands. We must strive towards equitable service across Scotland that is efficient, reliable and good value.
“Every taxpayer in Scotland should be able to use a railway service which is reliable and affordable – especially if we are serious about our 2045 net-zero target.”
Mr Borland said: “Scotland’s railways are an important part of the transport mix that keeps Scotland’s 350,000 small businesses moving. Nearly a fifth – 18.8% – of Scottish SMEs (small and medium sized enterprises) rely on some form of public transport to carry out their business operations. But, at least as importantly, many more bank on the rail network to get their staff and customers to and from their door each day.
“When the national rail operator is under public ownership, it opens up opportunities to leverage such a valuable asset for the greater economic good. That might be improving strategic links between our cities, or making sure services are operating at the times and places customers and staff need them, whether they’re going to a concert or getting home from a late shift in a bar.”
Ms McWilliam highlighted her view that “Scotland has a real opportunity to be a world leader in sustainable transport”.
She added: “The Glasgow to Edinburgh route demonstrates the excellence of electrification, and being able to travel between two major cities in less than an hour is a real advantage for foreign direct investment.
“The Edinburgh to London route takes just over four hours – direct from one city centre to the other. This is also a major advantage as it allows business leaders to continue their working day during travel, as well as the opportunity [to] make more sustainable transport decisions.”
Ms Cameron also flagged the global context.
She said: “There are great examples of rail operators around the world achieving best-in-class results and we should be open to learning from them and following their examples. Improving service standards, driving economic growth and accelerating Scotland’s competitiveness on the global stage is our ultimate goal and business stands ready to support [the] Scottish Government to achieve this shared aim.”
Mr Patrick also flagged the need for faster decision-making.
He said: “Glasgow, and Scotland’s rail transport system more broadly, is facing significant challenges that urgently require attention from both government and business leaders. We are keen to support Transport Scotland, SPT (Strathclyde Partnership for Transport), and [Glasgow] City Council in accelerating the delivery of key transport projects. The urgency of addressing economic growth and net-zero targets demands that we move beyond standard practices and speed up decision-making wherever possible.”
Focusing on the Glasgow City Region, Mr Patrick added: “Additionally, the integration of light rail and bus services into a cohesive public transport system is essential for improving overall connectivity. The Connectivity Commission’s vision for a comprehensive rail line linking the airport, Advanced Manufacturing Innovation District, Braehead shopping centre, and the city centre is a prime example of the strategic thinking needed for future growth. However, progress on this route has been slower than expected, and we are keen to work with stakeholders to accelerate its development.”
Looking more broadly at Scotland’s railways, taking in responsibilities of Network Rail as well as ScotRail, Ms Cameron said that “ongoing investment in rolling stock, track and infrastructure to meet future demand must be a top priority”.
She added: “This should also include improvements to the customer experience, particularly consistency on wifi connectivity to attract more business travellers. As the public sector purse tightens, now is the right time to work in partnership with the private sector to leverage investment and present an opportunity which commercially stacks up.”
