Current status: Answered by Stephen Flynn on 11 June 2026
To ask the Scottish Government whether it plans to adopt a public financing model for the purchase of new trains, similar to that proposed in the report commissioned by ASLEF and written by Glasgow University academics, A Public Vision for Financing Scotland’s Railways.
Train ownership and operational costs over the asset’s lifespan constitute a substantially greater share of total expenditure than the initial purchase price. It is therefore essential to explore a range of financing and procurement options to ensure best value for money and long-term affordability.
As the First Minister has set out in the previous government, we are making good progress towards initiating a programme of bond issuances from 2026-27, with a total programme of around £1.5 billion over the next parliamentary term, subject to market conditions.
As set out in the published outline business case (https://www.gov.scot/policies/investment-finance/scottish-government-bonds), this programme will support capital investment within our existing borrowing powers and limits. Any proceeds will be used exclusively for capital spending and infrastructure, in line with our legal powers.
The business case considers a range of borrowing options, including continued use of the National Loans Fund and other sources, and concludes that a bond programme can represent value for money while supporting our wider economic objectives.
ASLEF’s recent report on Green Bonds provided a useful contribution, and we remain open to further discussion and analysis alongside current Scottish Government policy for the procurement of significant contracts in the future.
In terms of bond structures, we are keeping our options open, including the potential use of green bonds alongside conventional or unlabelled issuances.