1. Performance report

Performance Overview

1.1 Chief Executive’s Foreword

I am pleased, as Chief Executive of Transport Scotland, to present our 2025-26 Annual Report and Accounts.

2026 marks the twentieth anniversary of Transport Scotland. While the organisation has evolved significantly over the past two decades, our focus remains firmly on the priorities that underpin our vision for a sustainable, inclusive, safe and accessible transport system, helping to deliver a healthier, fairer and more prosperous Scotland for communities, businesses and visitors alike.

Transport plays a vital role in everyday life. Every journey, whether for work, education, connecting with family and friends, accessing essential services, or conducting business, depends on a transport system that can respond to the changing needs of our people, communities and economy. As Scotland continues to evolve, so too must the networks and services that support these connections, ensuring they remain resilient, efficient and accessible for all.

The past year has marked another significant stride towards delivering the Scottish Government’s priorities, and I am incredibly proud of the dedication, professionalism and expertise of our people, whose efforts continue to make a positive difference to communities across Scotland.

This report highlights a number of key achievements from the year, including progress on the A9 dualling programme, completion of the East Kilbride electrification project, removal of peak rail fares from the ScotRail network, the introduction of the MV Isle of Islay into the service, and the acquisition of Ardrossan Harbour into public ownership. It also reflects our response to significant unplanned events impacting the transport network, including the Union Corner fire in Glasgow, and Storm Amy, where our robust response ensured the safe operation and restoration as soon as possible to mitigate disruption as far as possible. These achievements were delivered in a challenging fiscal environment, requiring careful prioritisation of resources and a continued focus on value for money while maintaining our commitment to investing in transport services and infrastructure to support Scotland’s long term economic, social and environmental ambitions.

Underpinning this delivery has been a continued focus on strengthening how we operate as an Agency of the Scottish Government. Through our Transforming Transport Together programme, we have progressed organisational change to improve resilience, align resources more closely to our strategic priorities and strengthen collaboration across Transport Scotland. These changes have enhanced our ability to respond to an increasingly complex operating environment and enhance our ability to deliver a more integrated, efficient and user-focused system.

As we look ahead, Transport Scotland will continue to play a vital role in delivering the Scottish Government’s priorities and shaping the future of transport in Scotland. I look forward to working alongside our talented colleagues and partners across the sector to build on the progress made to date and continue delivering a sustainable, inclusive, safe and accessible transport system for the people and communities of Scotland.

Alison Irvine

Chief Executive, Transport Scotland

1.2 Our vision and purpose

Transport Scotland was established on 1 January 2006 as the national transport agency for Scotland (the ‘Agency’) and is part of the Scottish Government. We support businesses, communities, and public services, improving connections across Scotland, and beyond, through the development of transport projects and policies.

Transport Scotland is responsible for delivering a safe, efficient, and sustainable transport system that supports economic growth and improves quality of life across the country. Our work plays a vital role in connecting communities, enabling businesses to thrive, and helping Scotland move toward its net-zero carbon target.

Our purpose is to deliver the Scottish Government’s vision for transport. We do this by focusing on the priorities set out in the National Transport Strategy (NTS2), aligning with the National Performance Framework (NPF) and the Programme for Government (PfG). The National Transport Strategy provides the framework for future investment decisions, supported by delivery plans that set out the actions being taken by the Scottish Government to achieve its four priorities.

Bus, Concessionary and Active Travel

This directorate is responsible for the Scottish Government’s policy on bus services and active travel. It works to enable local authorities, operators and delivery partners to improve sustainable and accessible local transport options, with the aim of increasing bus usage. It promotes walking, cycling and wheeling through national infrastructure and regional behaviour change programmes, while leading the development and implementation of active travel policy across Scotland.

The directorate operates the National Concessionary Travel Bus Scheme, providing free bus travel to older, disabled and young people, and oversees the delivery and administration of concessionary schemes across bus, rail and ferry services. It also administers the Network Support Grant to bus operators and leads on wider bus policy, including regulatory frameworks, community transport, issues affecting asylum seekers, anti-social behaviour, and the decarbonisation of bus travel. In addition, it supports improvements to bus services through the infrastructure that underpins them.

Environment, Climate and Sustainability

This directorate works across government and with external partners to protect the environment, address climate change and promote sustainability within Scotland’s transport system. It leads the delivery of road transport climate change targets and supports the implementation of Low Emission Zones in Scottish cities. The directorate collaborates with partners to strengthen the resilience of the transport sector and support adaptation to climate impacts, while also driving the transition to zero-emission vehicles through legislation, regulation, research and stakeholder engagement.

It is responsible for delivering Scotland’s vision for public electric vehicle charging, working with local authorities and the private sector to accelerate investment and expansion. In addition, it explores the long-term implications of transport electrification on the energy grid, contributes to economic and workforce planning through the Transport Just Transition Plan, and supports environmental protection, biodiversity and landscape considerations across the trunk road network. Engagement with the haulage sector is also a key focus, promoting efficient and sustainable freight movement.

Ferries and Ports

This directorate supports vital transport links for Scotland’s island and remote communities and oversees legislation, policy and guidance relating to ferries and ports. Its responsibilities include the management and future development of the Clyde and Hebrides and Northern Isles ferry contracts, as well as vessel and infrastructure replacement programmes. It leads the Islands Connectivity Plan and develops both operational policies, such as fares, timetabling and accessibility, and broader strategic policies that intersect with other ministerial portfolios, including energy, environment and rural economies.

The directorate engages with a wide range of stakeholders, including island communities, small and medium-sized enterprises, local authorities and essential services. It also administers Scottish Government funding for local authority ferries, supports task forces and engagement activities, and is responsible for wider maritime policy, including ports, harbours, shipping and harbour orders under the Harbours Act 1964.

Finance and Corporate Services

This directorate plays a central role in ensuring Transport Scotland is effectively governed, financially sustainable and equipped to deliver the Scottish Government's transport priorities. It provides leadership and support across a broad range of corporate functions, including finance, human resources, learning and development, information and communication technology, facilities management, health and safety, information governance, and the sponsorship of transport delivery bodies.

The directorate underpins the effective operation of the organisation through robust financial management, governance, risk management and internal communications. It provides strategic and specialist support across Transport Scotland, promoting best practice, compliance and value for money, while overseeing financial accounting, reporting, budgeting, forecasting and accounts payable services.

In addition, the directorate leads engagement with the Scottish Government on financial and corporate matters and provides strategic advice to Ministers, the Chief Executive and the Audit and Risk Committee. It also oversees sponsorship arrangements for Transport Scotland's public bodies, helping to ensure they are well governed, financially sustainable and aligned with Scottish Government priorities.

Infrastructure Projects

This directorate is responsible for the design, development, procurement and construction of major trunk road improvement projects across Scotland. It oversees the planning and delivery of large-scale infrastructure projects, including road upgrades, bypasses and bridge construction, ensuring alignment with national transport objectives.

The directorate works closely with a wide range of stakeholders, including government agencies, local authorities, contractors and consultants, to ensure successful project delivery. It undertakes feasibility studies, risk assessments and environmental impact assessments to inform decision-making, while monitoring project progress, budgets and quality standards. It also provides leadership and expertise in procurement and contract management, maintaining Transport Scotland’s reputation as a centre of excellence in delivering major infrastructure projects.

Rail Delivery

The directorate is responsible for Scotland’s rail policy and its implementation, including strategic planning aligned with wider social and economic priorities. It oversees the delivery of major rail projects in partnership with industry, supports the development of sustainable rail freight, manages economic regulation and monitors the affordability of the rail programme. It also sets service standards for Scotland’s railway and holds delivery partners accountable.

Rail Reform

The newly created Rail Reform directorate addresses forthcoming changes to the rail industry from UK legislation, assessing the opportunities and risks for Scotland. It leads engagement with the UK Government and Scottish Parliament and evaluates structural options to determine the most effective future model for Scotland’s railway.

Roads Delivery and Operations

The directorate is responsible for the safe, efficient and sustainable operation and maintenance of Scotland’s trunk road network. Its responsibilities include asset management, technical standards, procurement and contract management, roads policy and the implementation of Intelligent Transport Systems. The directorate also leads efforts to improve road safety and reduce casualties, while ensuring network resilience through winter service provision, incident response and major event planning. In addition, it oversees the development and maintenance of road and bridge design standards to support the long-term performance of Scotland's strategic road network.

Strategy, Performance and Analysis

This directorate provides strategic leadership for Transport Scotland, supported by robust evidence, analysis and performance management. It oversees delivery of the National Transport Strategy and the transport sector's contribution to wider government priorities, while providing expertise in research, statistics, economics, appraisal and evaluation to inform policy and investment decisions.

The directorate coordinates transport portfolio performance reporting at Cabinet level, leads external communications and stakeholder engagement, and manages corporate correspondence. It also maintains strategic relationships with regional transport partnerships, local authorities, and UK and international partners to support effective collaboration and policy alignment.

Transport Integration and Connectivity

This newly established directorate leads the integration of transport modes across Scotland's network, supporting a seamless, accessible and sustainable travel experience. It is responsible for developing and delivering the Integrated Public Transport Strategy, coordinating major programmes and targeted interventions, and advancing transport governance reform. The directorate also promotes integrated fares and ticketing, digital passenger information and accessibility, while leading aviation policy including connectivity and decarbonisation.

1.3 Performance summary

Our contribution to the National Performance Framework

Our organisational focus continues to be on delivering the National Transport Strategy (NTS2) and supporting the achievement of transport-related national outcomes within the National Performance Framework (NPF), while contributing to the priorities set out in the Scottish Government’s annual Programme for Government (PfG).

The PfG is guided by the long-term vision set out in the National Performance Framework and outlines the actions to deliver national outcomes. In 2025-26, the Scottish Government focused its efforts and resources on four priorities: eradicating child poverty, growing the economy, tackling the climate emergency, and ensuring high quality and sustainable public services.

NTS2 supports nine National Outcomes within the NPF and contributes to all 17 United Nations Sustainable Development Goals. The links between the Strategy, National Outcomes and Sustainable Development Goals are set out in the NTS2 Monitoring and Evaluation document.

Key achievements

Transport Scotland has continued to make strong progress in delivering the National Transport Strategy, maintaining the safe and effective operation of Scotland's transport system while advancing targeted improvements to infrastructure, services and the user experience. Alongside this, we have progressed significant policy development in support of wider Scottish Government priorities, including delivery of the Climate Change Plan and Bringing Hope, Building Futures: Tackling child poverty delivery plan.

The Performance Analysis section provides further detail on how these activities have contributed to positive outcomes for communities, businesses and the environment. Highlights of our key achievements against strategic priorities during 2025-26 are set out below.

Reducing inequalities

Over the past year, Transport Scotland has continued to reduce inequalities by improving the affordability, accessibility and integration of transport. Key achievements include surpassing 250 million free bus journeys for under-22s, permanently removing ScotRail peak fares, freezing rail fares for 2026-27, introducing permanent free companion rail travel for blind and partially sighted passengers, and enhancing ferry concessions for island communities. Investment in smart ticketing, accessibility and bus infrastructure has further supported access to education, employment and essential services, while contributing to a more sustainable transport system.

Tackling climate change

We have continued to make progress in decarbonising Scotland's transport system and improving network resilience. Key achievements include completion of the East Kilbride rail electrification project, investment of £6.3 million to support 1,770 electric vehicle charging points, publication of a renewed car use reduction policy, and continued support for freight modal shift and Low Emission Zones. We also published the Trunk Road Adaptation Plan, setting out actions to strengthen resilience to climate change across Scotland's trunk road network, and awarded £3.4 million through the Freight Facilities Grant to encourage the movement of freight from road to rail and water.

Improving health and wellbeing

Continued investment in active travel infrastructure and behaviour change programmes has achieved sustained growth in cycling across Scotland with an 83% rise in cycling on Edinburgh’s City Centre West to East Link compared to 2024. Alongside this, we have committed record levels of road safety funding (£48 million), supporting over 200 safety schemes and national casualty reduction measures. While there will always be more to do on road safety, the latest figures represent the lowest number of deaths on Scotland’s roads in a non-pandemic year.

Supporting economic growth

We continue to strengthen the role of transport in supporting sustainable economic growth across Scotland. This includes the publication of Connecting Scotland – The Value of Transport, which highlights the critical contribution transport makes to achieving Scotland’s social, economic and environmental ambitions. Alongside this, we have continued to invest in the maintenance and upgrade of key infrastructure such as A9 dualling and progress on major rail and ferry investments.

We have also strengthened public ownership of key transport services and assets, including the direct award of the Clyde and Hebrides Ferry Services contract to CalMac Ferries Ltd and the public acquisition of Ardrossan Harbour. These measures support the long-term resilience and sustainability of Scotland’s transport network while helping to improve connectivity for communities and businesses.

Furthermore, improvements have been made to digital travel information and transport integration to enhance customer experience and support more efficient journeys. Public Ownership of Scotland’s passenger rail services has also continued to deliver benefits, with ScotRail and Caledonian Sleeper operating under public ownership since 2022 and 2023 respectively. In 2025-26, 89.5% of ScotRail services arrived at their destination within five minutes of their scheduled time, outperforming the Great Britain average of 85.6%, demonstrating the strong performance and reliability of Scotland’s railway.

Corporate focus

We have maintained a strong corporate focus on organisational transformation, workforce development, and improvements to working environments, with particular emphasis on leadership capability and staff experience. As set out in section 1.3, the Transforming Transport Together programme has delivered a restructuring of directorates to better align resources to priorities, with changes implemented from December 2025.

Key facts and stats

here were 57,452 kilometres of public road in Scotland in 2024. Seven per cent of this (3,746 kms) was trunk road, which is managed centrally by Transport Scotland; the remaining roads are the responsibility of local authorities.

• ScotRail operates over 2,000 daily services, serving over 360 stations across Scotland. The total route length of the railway network in Scotland is over 2,734 kilometres, of which around a third is electrified.

• As of 2024, Scotland has over 7,400 public EV charge points. Over 2,500 of those public charge points are part of the ChargePlace Scotland (CPS) network, with the rest belonging to commercial charging networks.

• There was a total of 8 million passengers and 3 million vehicles carried on ferry routes within Scotland in 2024. 52 million tonnes of freight was handled by ports in Scotland in 2024.

• 334 million journeys were made by bus in 2024-25. Over half of these were made under the National Concessionary Travel Scheme. There were 2.4 million people with National Concessionary Travel Cards in Scotland in 2025.

• Footways and cycle paths are a key part of the road network. Walking is the most popular way to travel to school, and the 2nd most used for travel to work.

1.3 Our key risks and challenges

The management of risk is an integral part of Transport Scotland’s strategy, operations and decision making. A risk is anything that can impede or enhance our ability to meet our current or future objectives and the achievement of the Transport Scotland’s priorities, responsibilities, and outcomes.

The Transport Scotland Senior Management Team review risks monthly, supported by the Transport Scotland Risk Management Group, which includes representatives of each directorate. The risk register is also reviewed quarterly by the Transport Scotland Audit and Risk Committee.

Our work and responses to identified risks are underpinned by a programme management approach which encourages cross directorate working to cut across traditional team boundaries and bring together a variety of skills, professions, and knowledge. Risks are reported and escalated to Ministers, Director-General Net Zero as Portfolio Accountable Officer, and Scottish Government Executive Team, as appropriate. Transport Scotland’s risk management is fully integrated with the Scottish Government process, with key risks feeding directly into the Director-General Net Zero Risk Register. In addition, the Chief Executive and Director of Finance and Corporate Services are members of the Director-General’s Senior Management Team.

Key Risks

Transport Scotland categorises risk in line with the Orange Book: Management of risk – Principles and Concepts. The corporate risks below are grouped by category and reflect those considered for escalation to the Portfolio Accountable Officer.

Commercial

During the year, risks relating to ferry service provision were updated to reflect the commencement of the directly awarded Clyde and Hebrides Ferry Services contract with CalMac in October 2025 and the ongoing procurement of the next Northern Isles Ferry Services contract, due to commence in 2028. These developments provided greater certainty over future service arrangements and reduced risks to continuity of service.

Financial

Throughout 2025-26, Transport Scotland continued to operate within a challenging fiscal environment, reflecting wider pressures on public finances and the need to prioritise expenditure within constrained budgets. Demand-led services, particularly concessionary travel schemes, remain sensitive to fluctuations in passenger numbers, while inflation, adverse weather, supply chain disruption and wider economic uncertainty continue to pose risks to transport services and infrastructure programmes.

Robust financial management enabled Transport Scotland to support the Scottish Government's savings objectives and maintain expenditure within available budgets. However, there remains a risk that future funding may not fully meet operational requirements, statutory obligations and Ministerial priorities. This risk is managed through rigorous financial planning, regular forecasting and monitoring, prioritisation of expenditure, and a continued focus on public service reform, efficiency and value for money.

Operational

The trunk road network is a vital national asset that must be maintained to support its safe operation and Scotland's economic wellbeing. During 2025-26, Transport Scotland worked closely with the Scottish Government and Ministers to prioritise investment in assets with the greatest potential to cause network disruption and continued to develop its Asset Management Plan to inform long-term investment decisions. This was supported by ongoing review of transport resilience arrangements across all transport modes, delivery of maintenance interventions identified through the Strategic Transport Projects Review 2 (STPR2) and the development of maintenance programmes aligned with statutory duties and Ministerial priorities.

A prompt and effective response to significant incidents remains essential to minimising disruption across Scotland's transport network. Multi-agency contingency plans are in place across all transport modes to manage both anticipated and unforeseen events, with key freight routes and lifeline services prioritised. Lessons learned from incidents, including severe weather events, are incorporated into future planning and response arrangements. Oversight of Transport Scotland's resilience framework is provided by the Transport Scotland Resilience Board, chaired by the Chief Executive and supported by a cross-organisational Resilience Operational Group.

Climate Change

Transport Scotland's responsibilities in this area encompass climate change mitigation, climate adaptation and support for a just transition, reflecting both Scottish Ministers' and the Agency's statutory duties. This includes working with partners to reduce transport emissions, improve the resilience of Scotland's transport network and support adaptation to the impacts of climate change. The Agency also delivers its public body climate change duties through corporate carbon management, driving emissions reductions across its operations, maintenance activities and workforce behaviours.

Transport Scotland also leads on the transport sector contribution to the Climate Change Plan (CCP). In November 2025, the Scottish Government published the draft CCP, and in March 2026 the final CCP which includes 28 actions for the transport sector to support meeting Scotland’s new statutory Carbon Budgets.

Transport Scotland continues to be represented on the Scottish Government Global Climate Emergency (GCE) Board and has its own sector board, the Transport Scotland Climate Change Board (CCB), with a remit covering climate adaptation, mitigation and just transition, which reports to the GCE Board. Transport Scotland Directors are Senior Responsible Officers for oversight of their climate change outcomes and risk mitigation, reporting to the Climate Change Board as required. The Approach to Climate Change Adaptation and Resilience (ACCAR) outlines the key climate risks affecting Scotland’s transport system and sets out our strategic outcomes for Road, Rail, Aviation and Maritime transport networks.

Cyber Security

The increasing threat of cyber-attacks requires proactive management to protect Transport Scotland's systems, data and services. Working closely with the Scottish Government, we maintain a range of cyber resilience policies, controls and incident response arrangements, supported by staff training and awareness to reduce risk. During 2025-26, both the Scottish Government and Traffic Scotland achieved Cyber Essentials Plus certification, demonstrating continued commitment to strengthening cyber resilience and safeguarding critical services.

People

Our people are central to Transport Scotland's success and critical to achieving our strategic objectives. Ensuring the wellbeing, engagement and development of our workforce is essential to maintaining the capability and capacity needed to deliver for Scotland. The Senior Management Team regularly reviews workforce information and considers issues affecting staff, enabling timely action to support employee wellbeing, organisational effectiveness and business performance.

In addition, we are progressing a programme of organisational transformation through our Transforming Transport Together Programme. This programme is strengthening Transport Scotland’s ability to deliver for Ministers and the people of Scotland, ensuring we are well positioned to respond to future challenges and opportunities. It is helping shape how we operate, align resources to priorities and develop the culture, capability and ways of working required to become an organisation where:

• we are resilient – we have the tools we need to do our job, workload expectations are clear, balanced with capacity and we have collective and transparent controls in place.
• we are delivery and outcomes focused.
• we understand our purpose and can effectively prioritise our work.
• we can efficiently use our available working time.
• we are empowered to work broadly and flexibly across teams.
• we work in a way that aligns with our values, and we have capacity to do that.

Over the last 12 months we have delivered on several areas under our six transformation workstreams:

1. Organisation purpose - Developed and embedded a clear and concise internal narrative for our organisation to strengthen understanding of our purpose, vision and values to create a shared sense of direction across Transport Scotland.
2. Prioritisation exercise - Identified a set of high-level priorities to help support strategic decision-making and resource allocation aligned with organisational goals.
3. Wellbeing - Our mental health first aiders continued to focus on supporting the wellbeing needs of all colleagues across our organisation, with various wellbeing events, staff-led mindfulness support and held a wellbeing week in October.
4. Organisational design - Implemented organisational restructuring to ensure resources are better aligned to strategic priorities and business need.
5. Leadership and managing change - Designed and launched a line manager development programme as well as co-designed and developed a leadership charter with our senior managers from across the organisation.
6. Learning and development - Delivered colleague development sessions as part of our All-Staff calls and held a staff conference for colleagues who came together for the day to learn, network and connect on a wider range of topics.