NHS Grampian has been experiencing significant financial and operational pressures for several months. This led to the Health Board’s escalation to Stage 3 of the NHS Scotland Support & Intervention Framework for financial management in January 2025. Whilst Stage 3 is the first formal stage of escalation and, as such, NHS Grampian has been receiving tailored support, there remain concerns about the Board’s financial position, plans, leadership and governance; and any associated impact this may have on the delivery of local services.

Following careful consideration, the Government has decided that NHS Grampian’s escalation status be raised to Stage 4 for finance, leadership and governance. Further, formal escalation is felt necessary (along with the additional support and scrutiny this provides) to help mitigate the significant risks to both the local Board and wider, overall NHS Scotland financial positions.

The key focus of this further escalation will be to arrest the rate of expenditure in NHS Grampian and help mitigate immediate concerns about financial and associated operational pressures, and to stabilise the system. One of the key, initial elements of this package of enhanced support and scrutiny will be a whole system diagnostic, to be carried out by an external consultancy and is expected to conclude in June. That will help to inform the tailored support package that follows and will provide a robust basis for the wider, transformation work required over the longer term in NHS Grampian; in support of the local leadership under the new Chief Executive, with the interviews for that post taking place in early June.

With the agreement of Parliament, a ministerial statement will be provided at the appropriate point to keep members updated on this matter.

Bringing ScotRail into public ownership and control represented a milestone in the devolved history of the railway in Scotland. Now that the 3rd anniversary of that crucial event approaches, it is right that we reflect on what has been achieved since then, and also look forward to the future.

This Scottish Government has maintained a strong track record of public investment in our railways. Public ownership is a logical extension of this scale of public investment, which remains at record levels - £1.6 billion pounds this year.

Public ownership has created the opportunity to deliver a railway which is run for the benefit of customers. The ability to plan for the long term brings with it the opportunity to modernise Scotland’s railway and deliver passenger services which are efficient and sustainable.

Our approach is widely admired and even envied elsewhere in GB – both our counterparts in Wales and the North of England want to follow our devolved model and success, which is reflected in consistently higher ScotRail train performance and Passenger Satisfaction in Scotland than the GB average.

We have seen strong growth in both passenger journeys and revenue, with a 27 per cent increase in journeys between 2022-23 and 2023-24. And this year, we expect to see that increase further to more than 84 million passenger journeys by the end of March this year.

We know that affordability is a key factor in the decision to choose rail, therefore we have kept fares increases as low as possible to maintain the affordability of rail as a travel option while balancing the increasing costs of inflation to the public purse.

The off-peak all-day trial which was funded by the Scottish Government from the end of 2023 until September 2024, simply could not have been undertaken under private franchising and, unsurprisingly, the cheaper simpler fares which were offered were popular with customers. We have learnt a lot from that trial – which will be used to develop further fare offers.

Since last September, regular travellers have been able to take advantage of a 20 per cent discount on all season tickets (which is the equivalent of a 40 per cent saving on the cost of day tickets), and an increase in the number of journeys available with a Flexipass – which offers a saving of 32 per cent.

We are seeing an increase in passengers on our railway - passenger journeys on our publicly owned train services are up 4.5% for each 4-week period this year compared to the same period last year when the trial was running.

ScotRail continues to develop fares initiatives which can help attract more passengers, while offering savings and added value to existing rail users.

It now employs 500 more staff than ever before, with 250 of those being train drivers meaning driver recruitment is at record levels and making real progress towards eradicating the reliance on rest day working that is all too common across the rail industry. ScotRail is also making progress in ensuring passengers feels safe with the expansion of its travel safe team into the east of the country, bringing the team up to 37 members.

Capacity on the West Highland Line has recently been increased in a boost for the tourism economy, and ScotRail is demonstrating innovation by trialling the use of vegetable oil as an alternative to diesel fuel.

Next week ScotRail will publish a report that sets out the value it brings to the economy, and I would encourage everyone with an interest in Scotland’s railway to read this once available.

We have achieved much to make Scotland’s railway successful in the last 3 years but there is much more we wish to do to give the people of Scotland the rail service they need and deserve.

The Scottish Government is committed to managing the risks and capturing the opportunities of the transition for the transport sector. That is why today we are launching a consultation on a draft Transport Just Transition Plan, which sets out a vision for a just transition for the sector.

Transport remains Scotland’s largest source of emissions, so it is critical that we make progress on reducing its emissions in a way that is fair and just. The draft Plan sets out how we will do that and draws out key messages addressed to different groups: people and communities; workers; and businesses and organisations.

It recognises the inequalities that affect people’s use of transport, including the fact that many of our rural communities are especially reliant on car use. It also sets out evidence suggesting that there will be no major sector-wide job losses - though the job mix will change - and it highlights the opportunity that the transition presents to address challenges such as upskilling and improving diversity. For businesses and organisations, the most pressing need for action will be to support the transition of road transport, focused on the transition of Heavy-Duty Vehicles and the financing this will require.

The draft Plan outlines the key actions that the Scottish Government is taking to address the challenges and opportunities of the transition. This includes delivering car use reduction interventions, supporting growth by encouraging demand for zero emission HGVs, and a focus on green transport skills. The Plan highlights our ambition to develop a transport sector that is more sustainable, safe and inclusive, and to create a healthier and fairer Scotland for communities, businesses and workers.

The consultation on the draft Plan is an opportunity to seek views on how we can continue to develop our overall approach – ensuring that communities, workers and businesses have an opportunity to shape our future policy. The responses to this consultation will inform our future approach – including the analysis and policies that will be set out in Scotland’s next Climate Change Plan.