Caledonian Sleeper Train Service Between London And Scotland Could Be Nationalized After Funding Row

The London-listed firm Serco’s $900m contract to run the Caledonian Sleeper train service between London and Scotland has been terminated by the Scottish Government. This follows a franchise funding row between the government and the operating company.

Serco’s contract to run the service—popular with Scottish MPs who have to travel frequently between Westminster and Scotland—should have run until 203o but will now be terminated in June next year, said Scotland’s transport minister Jenny Gilruth on October 5.

Rail unions have called for the service to be taken back into public ownership.

Passenger numbers on the Caledonian Sleeper were recovering after a significant fall during the Covid pandemic with the reduction in income offset by emergency Scottish Government funding.

The current 15-year franchise was awarded to the Serco in May 2014.

The SNP said it welcomed the termination of the contract and that this ought to be the opportunity to bring the “iconic service into public control.”

The Scottish government owns and operates ScotRail through an arms-length company. The Sleeper franchise was part of ScotRail until it was split into a separate contract in 2015.

Ms Gilruth said: “I can confirm that a notice was served today which confirms that the Scottish Ministers will terminate the Franchise Agreement with Serco Caledonian Sleepers Limited on June 25, 2023.

“Work is underway to determine arrangements for the continued provision of Caledonian Sleeper rail services beyond June 25, 2023 and this will be updated to Parliament once determined.”

She added that a funding proposal from Serco was rejected on the grounds of “not representing value for money to the public.”