Finance and Governance
Our Framework document summarises how we work with Scottish Government (SG) and our key roles and responsibilities. The Framework Agreement does not confer any legal powers or responsibilities, it forms a key part of our accountability and governance framework and is subject to regular review, with any changes agreed by Scottish Ministers.
The Chief Executive is accountable to the Scottish Ministers for the economic, effective, and efficient operation of the Agency and is responsible for providing assurance in relation to financial and operational performance. The Chief Executive is appointed as the Accountable Officer for the agency by the Principal Accountable Officer for the Scottish Administration (the Permanent Secretary).
Our Senior Management Team are responsible for monitoring and challenging progress against our objectives which are set out in our annual evolving business plans and derive from our statutory, legal, contractual commitments and Scottish Ministers Programme’s for Government. Progress is monitored on a quarterly basis, and we formally report on our performance against our objectives within our Annual Report and Accounts each year.
As part of our Performance Monitoring processes, we also review the Risks and Challenges that may impact on the achievement of our objectives and put in place appropriate mitigating actions.
Our Audit and Risk Committee provides additional challenge and external perspective to the work of the Agency and is also responsible for drawing significant matters arising to the attention of the Scottish Government Audit and Assurance Committee.
Value for Money
Under the Scottish Public Finance Manual, Accountable Officers appointed by the Principal Accountable Officer have a specific responsibility to ensure that arrangements have been made to secure best value. Scottish Ministers expect all Accountable Officers to comply with the duty of Best Value placed upon them.
We undertake continuous improvement in performance, and scrutiny and challenge of budgets, to drive efficiencies and ensure that our processes align with the Scottish Public Finance Manual.
Partnership and Collaborative Working
As an Executive Agency that sponsors other public bodies, Transport Scotland works collaboratively and in partnership with other organisations. This is achieved in part through a Transport Scotland sponsorship hub for our sponsor teams and providing a platform for working collaboratively on key matters, such as the Public Service Reform (PSR) agenda.
Procurement
Procurement and commercial capability are key enablers in successfully delivering our business objectives and securing best value. While a large part of our budget is allocated to other public and private sector organisations through grants and support, our procurement spend is significant.
In line with the Procurement Reform (Scotland) Act 2014, Transport Scotland will continue to report on the strategic direction of our procurement activity for each financial year in our corporate procurement strategy and will prepare an annual procurement report which details how we have delivered our procurement objectives. Transport Scotland’s procurement objectives align with the Public Procurement Strategy for Scotland and our vision for procurement:
“To support the delivery of value for money, sustainable and innovative infrastructure and services in fulfilment of the Scottish Government’s ambition and vision for transport, and Transport Scotland’s corporate commitments through a strategic and systematic approach to procurement"
Estates Strategy
As our organisation adapts to supporting delivery in changing circumstances, so does our ongoing support for our people. In 2025 Transport Scotland moves to new premises in Glasgow where our people will benefit from a fully flexible workspace with colleague wellbeing at the heart of the design. The office space at 177 Bothwell Street reflects colleagues' views on the need for flexible working spaces that support collaboration with colleagues and stakeholders alike.
As a leader in sustainability, 177 Bothwell Street includes climate friendly technology and facilities throughout the property. It's fully electric, using 2.52 GWH (Gigawatt-hours) of certified energy from Blantyre Muir Wind Farm and has excellent active travel facilities. an energy performance certificate score of 50%. Furniture from our existing offices has been used where possible with furniture no longer required and other furniture is being reused in the wider public sector.
Additionally, in line with the ongoing public service reform agenda, plans have been developed during the reporting period for Transport Scotland to sub-let the second of its leased floors in its 177 Bothwell Street premises to two other public sector bodies, providing opportunity for efficiencies, collaboration and continued sharing of services and resources.
Information Management
Transport Scotland complies with the Scottish Government Records Management Plan which sets out how we maintain our information and records in an effective manner while complying with key legislative requirements. We adhere to the key principles of the UK General Data Protection Regulation (GDPR) and Data Protection Act 2018 and conduct an annual compliance review to monitor compliance with the legislation. As a Scottish public authority, we are subject to the Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004, and we actively monitor performance in relation to responding to requests for information within the statutory timescales.
Sponsored Bodies
Continuing to provide funding for public transport services and to improve and maintain transport infrastructure in Scotland is vital in allowing the people of Scotland to travel freely while ensuring we minimise our global impact on the environment.
Transport Scotland funding also reflects our role as sponsor of:
- Caledonian Maritime Assets Limited (CMAL)
- David MacBrayne Limited (DML)
- Highlands and Islands Airports Limited (HIAL)
- Mobility Access Committee Scotland (MACS)
- National Smart Ticketing Advisory Board
- Scottish Canals (SC)
- Scottish Road Works Commissioner (SRWC)
- Scottish Rail Holdings Limited (SRH)
- Scottish Road Works Commissioner (SRWC)
Scottish Ministers, represented by Transport Scotland, are the sole shareholder in CMAL, DML, HIAL, and Scottish Rail Holdings Ltd (SRH).
These organisations are operated and managed independently of the Scottish Government, and do not fall within the Departmental Accounting boundary. The companies all publish an annual report and accounts.
We provide funding directly to HIAL, SC and SRWC to cover the net cost of their operations and capital investment.
Our Chief Executive’s duties include establishing a framework for the relationship between SG and the bodies we sponsor, overseeing the operation of that framework and that they are delivering value for money, ensuring the public appointments to the bodies are made appropriately and that appropriate assurance is provided on the performance and governance of the bodies.
Network Rail is a UK central government body sponsored by the Department for Transport, but we provide funding towards the operation, maintenance and renewal of the railway in Scotland under the terms of a Network Grant.
Transport Resources
Transport Scotland’s financial resources form part of the overall Scottish budget, which is currently set on an annual basis and delivers the proposed spending plans for 2025 to 2026, as presented to the Scottish Parliament. A full breakdown of the portfolios budget for 2025-26 and comparison to 2024-25 budget and 2023-24 outturn is available per the published Scottish Budget 2025 to 2026.
The portfolio’s spending plans aim to help Transport Scotland develop and maintain a sustainable, safe, inclusive and accessible transport system. The table below provides the published level 2 spend breakdown:
| Level 2 | 2023-24 Outturn £m | 2024-25 ABR Budget £m | 2025-26 Budget £m |
|---|---|---|---|
| Rail Services | 1,470.9 | 1,607.4 | 1,538.2 |
| Concessionary Fares & Bus Services | 393.2 | 429.7 | 468.2 |
| Sustainable Travel, Low Carbon & Other Transport Policy | 221.4 | 270.3 | 313.6 |
| Trunk Road Network: Safety, Adaptation, Maintenance & Improvement | 764.7 | 1,010.3 | 1,064.2 |
| Ferry Services | 385.2 | 434.5 | 533.0 |
| Air Services | 88.4 | 89.3 | 92.1 |