Policy & Criteria Baselines

Public Transport Policy Baselines

The Scottish Government’s public transport policies are focused on creating a sustainable, inclusive, and integrated transport system that supports climate action, economic development, and social equity. One of the main objectives of these policies is to reduce car dependency by improving the attractiveness, availability, and affordability of public transport across all modes: bus, rail, ferry, tram, metro alongside cycling, walking and wheeling.

Key national strategies such as the National Transport Strategy 2 (NTS2) and the Climate Change Plan position public transport as essential to achieving Scotland’s net zero emissions target. These frameworks promote a just transition that addresses transport poverty and supports modal shift, with investment targeted towards decarbonising transport fleets, expanding electric vehicle infrastructure, and enhancing public and active travel networks.

Rail policy saw a major shift in April 2022 when ScotRail services were brought into public ownership following the ending of the Abellio franchise. This change has enabled greater public sector control over service design, timetabling, and fare policies, with a renewed focus on affordability, passenger experience, and environmental sustainability.

Ferry services, which are particularly vital to Scotland’s islands and remote communities, continue to receive government support to maintain lifeline services. Policy in this area emphasises connectivity, reliability, and fleet renewal with a growing focus on zero-emission vessels.

A critical cross-modal priority is smart and integrated ticketing. The Scottish Government has long advocated for a streamlined, user-friendly ticketing system that allows passengers to move easily between services and operators. The 2024 Fair Fares Review reaffirmed this commitment, supporting the creation of a national integrated ticketing system. This includes measures such as smartcards, contactless payment, and capped daily or weekly fares. These initiatives aim to simplify journeys, enhance affordability, and encourage greater public transport use. NSTAB was established to provide advice in making this happen.

Regional Transport Partnerships (RTPs) and local authorities play a key role in planning and coordinating transport services, including in rural and island areas where reliable, integrated transport is vital for access to work, education, and services. Together, these policies reflect a cohesive approach to building a more connected, equitable, and climate-resilient transport system for Scotland.

Bus Reform and Franchising Policy in Scotland

Bus services, account for the majority of public transport trips in Scotland. Bus reform is underpinned by the Transport (Scotland) Act 2019, which provides local authorities with powers to establish bus franchising, run municipal services, or enter into enhanced partnerships with private operators.

Within England, the Bus Services Act 2017 supported the introduction of bus franchising by local authorities’ enabling greater control over services, allowing them to specify routes, fares, and standards whilst contracting operators to deliver services. Greater Manchester launched the Bee Network, the first such scheme outside London in 2023. Other English regions, including Liverpool City Region, West Yorkshire, and the North East, are developing similar plans.

Wales is progressing towards nationwide franchising through forthcoming legislation. The Welsh Government has committed to a publicly planned, integrated bus network as a key component of its wider transport and sustainability agenda.

In Scotland, while franchising powers now exist, the current position varies across governance levels. Nationwide bus franchising is not being promoted as a national policy aim and so is currently viewed as an unlikely outcome in the medium term. We believe there is no public political consensus on the matter, nor is there a collective stance among bus operators. As such, NSTAB considers this a key area for continued observation and review.

At the regional level, varying degrees of engagement with franchising are observed. The Strathclyde Partnership for Transport (SPT) has proposed a clear short-to-medium-term initiative for franchising, whilst Shetland already operates franchising by default due to its circumstances where the entire bus network operates under contract to the local transport authority. Other Regional Transport Partnerships (RTPs) have not submitted formal proposals, though some exert substantial operational influence over services within their territories. There is, however, clear interest among RTPs in exploring the benefit-cost ratio (BCR) of franchising models in more depth.

Local authority-level franchising has not yet progressed to formal proposals, and there is no established collective viewpoint among Association of Transport Co-ordinating Officers (ATCO) members at present.

Criteria for Project Assessment

Project assessment within this report is structured around four core dimensions: timelines, project cost evaluations, programme cost evaluations, and benefit-cost ratios.

Timelines

Timelines are categorised to assist in determining project readiness and urgency. Short-term projects are defined as those implementable within 0 to 24 months, medium-term projects span 25 to 60 months, and long-term projects are those requiring more than 60 months to deliver. This stratification provides a way for evaluating feasibility and alignment with national transport goals.

Project Cost Evaluation

Cost evaluation is conducted at both the project and programme levels. Projects are considered low cost if annual expenditure is up to £100,000 (exclusive of VAT), medium cost if between £100,000 and £1 million, and high cost if exceeding £1 million per annum.

Programme Cost Evaluation

Similarly, entire programmes are designated as low cost if under £5 million per year, medium if between £5 million and £10 million, and high cost if they surpass £10 million annually. These thresholds provide a fiscal framework for strategic decision-making and resource allocation.

Benefit-Cost Ratios

Benefit-Cost Ratios (BCRs) play a critical role in justifying investment. A low BCR is identified when the score is below 1, although allowances may be made for rural and island areas where social value considerations are significant. Medium BCRs score above 1, and high BCRs are defined as exceeding 2. BCR modelling is expected to take into account not only traditional economic costs and benefits but also incorporate broader societal outcomes, including social value, carbon impacts, travel time savings, and general service improvements.

Together, these criteria serve as NSTAB’s analytical lens for evaluating the strategic, economic, and social merit of project proposals. They ensure that smart ticketing reform and endorsement efforts are consistent, evidence-based, and aligned with broader objectives of accessibility, affordability, and environmental sustainability.