24 February 2026
Concerns have been raised about whether the cost to monitor and repair the Cairngorm Funicular could outweigh the benefits to the local and national economy.
This stark warning comes from a new report issued today by the Scottish Parliament’s Public Audit Committee.
The report follows the Committee’s look at the funding and operation of the troubled funicular.
Opened in 2001 at a cost of £19.5 million, the funicular was closed for four years from September 2018 due to issues with the track. It briefly opened again in 2023 before closing once more for further repairs. It finally reopened in February 2025.
During this time, ownership of the funicular has moved into public hands with Cairngorm Mountain Ltd, a company owned by Highlands and Islands Enterprise (HIE).
Now, with costs of over £16 million to reinstate the funicular and a reliance on public finance, the Committee has raised concerns about whether the costs of regular monitoring and maintenance may become disproportionate to its benefit.
The Committee has also called on the Scottish Government to be more transparent about its plans for the funicular and to ensure that the project remains value for money.
During the Committee’s consideration, there was also frustration about the level of information available to the Committee to take a judgment on HIE’s decision-making on the future of the funicular.
The report now calls on HIE to make significant improvement in this area as well as ensuring that the governance arrangements in place for the funicular are be simplified and made more transparent.
Speaking as the report launched, Committee Convener Richard Leonard MSP said:
“It is safe to say that the Cairngorm Funicular has had a somewhat troubled history, with repeated and lengthy closures and requiring significant public investment.
“This Committee has heard from those in charge of the funicular, the public bodies supporting it, those living and working in the area and nature conservation activists. We have heard both optimism and scepticism about what comes next. And it presents a picture of concern for us that the future benefits are not as clear as they ought to be.
“There also needs to be a much more transparent governance structure in place for the running of the funicular. A simplified structure would allow for better public scrutiny of public money and decisions on the future plans for the Cairngorm Mountain resort.”
The Committee agreed to carry out scrutiny to ascertain the current situation, further to the Session 5 Public Audit and Post-legislative Scrutiny (PAPLS) Committee’s work on the Cairngorm Funicular Railway.
The Committee heard from senior representatives from HIE and CMSL on 17 September 2025.
It undertook a visit to Cairngorm Mountain on 17 November 2025 where it met with HIE and CMSL. On the following day the Committee held a meeting with local stakeholders. A note of these meetings and all written evidence received by the Committee in relation to its scrutiny is available on the Committee’s dedicated Cairngorm Funicular Railway webpage. The Committee also took evidence from Parkwatch.
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