Performance analysis
The purpose of this section is to provide a detailed analysis of the performance of the organisation in 2023-24.
Performance
We assess our performance against the objectives in our business plan. Each objective is grouped under our corporate plan priorities and measured against the progress expected at the start of the year. We are continuing to develop and refine our Key Performance Indicators and milestones to improve our programme and portfolio management.
Promotes equality
| Commitment | Action |
|---|---|
| We will support delivery of concessionary travel and bus sector support by providing a managed payment service. | In 2023-24, we delivered over £353 million in concessionary reimbursement payments to participating operators and over £44 million in Network Support Grant payments, critical in supporting the continued effective operation of Scotland’s bus industry. In our operation of an effective managed service, we have also undertaken significant work to mitigate and deter instances of fraud within the concessionary schemes and have assisted scheme users and other stakeholders by responding to 99.6% of 3,420 items of correspondence, including 100% of FOIs, within the required timescales. |
| We will deliver smart, integrated ticketing and payment policy, projects, and services for public transport. | In 2023-24 we established the National Smart Ticketing Advisory Board, comprising of different modes, transport authorities, users, and experts to advise Scottish Ministers on the strategic direction for interoperable and accessible smart ticketing in Scotland. We made concessionary ferry vouchers digital, meaning eligible residents in Orkney and Shetland can now use digital vouchers stored on their National Entitlement Card, and commenced delivery of the Digital Travel Data Services to make travel information and journey planning easier, more accessible and prepared for future bus open data legislation. 2023-24 also saw the completion of five ‘Mobility as a Service’ (MaaS) pilots funded through our £2 million MaaS Investment fund, which will provide the evidence base for future policy and investment requirements. |
| We will improve travel opportunities for disabled people by continuing to deliver under the Accessible Travel Framework. | Following completion of an evaluation project in 2023, the final delivery plan for the Accessible Travel Framework (for 2024-26) is being drafted with input from disabled people’s organisations and will be published later in 2024. Work is underway to instigate a new internal Delivery Board to increase oversight and governance within Transport Scotland. A consultation on Inclusive Design Guidance closed at the end of March 2024 and responses are being analysed. |
| We will complete Bus Taskforce work to address ongoing bus operator challenges and develop longer term bus sector transformation plans to improve sustainable bus service provision post-Covid. | The Bus Taskforce was set up in 2022 to support the transition of the bus sector from the additional government support provided during the pandemic to a more sustainable future. It convened for a total of four meetings over the course of ten months, with the final meeting taking place in June 2023. A report summarising the findings of the Taskforce was published on 3 April 2024. |
| We will continue preparation of the Islands Connectivity Plan. | Published on 31 January 2024. |
| We will support delivery of the 20% Car KM Route Map working across government and with local and regional partners, including development of additional policy measures to reduce car demand. | Engagement with partners has continued throughout 2023-24 to inform publication of 20% Car KM Route Map in 2024-25. |
| We will complete our Fair Fares Review and publish our draft vision for public transport to set out our future priorities and the actions we will take to ensure there is a viable and sustainable public transport system for the future. | Fair Fares Review publication on 22 March 2024. |
Take climate action
| Commitment | Action |
|---|---|
| We will work with the maritime sector in Scotland to transition to a decarbonised future while continuing to facilitate key movement of goods and people and offshore energy development. | We have worked with Scottish Maritime Cluster and continue to engage with British Ports Association (BPA) and their members, to enable sharing of best practice for ports decarbonisation plans. |
| We will support a just transition for people and businesses to establish the infrastructure required to enable sufficient and fair access for consumers and businesses to net zero transport options. | Research has commenced into future infrastructure requirements based on future technology trends. |
| We will take action to accelerate progress to net zero in key sectors, namely trucks and heavy vehicles, to ensure the swiftest possible transition to zero-emission vehicles, whilst at the same time reducing car use. | HGV Decarbonisation Pathway published on 19 March. Scottish Zero-Emission Bus challenge fund Phase 2 applications closed on 15 September 2023, with the fund launched and awards made totalling £41 million for project implementation over 2024-25 and 2025-26. |
| We will maintain a programme of rail investment aligned to Scottish Government priorities which will maintain the continued safe and efficient delivery of existing services and continue with the delivery of the Scottish Government’s Rail Decarbonisation Action Plan. | Electrification of the East Kilbride Line is now underway with a completion date of December 2025. We are continuing to deliver feeder station works to support Fife and Borders electrification. Design and development work for electrification of routes in Fife, Borders and to Aberdeen are continuing. Accessibility works (‘access for all’ schemes and Carstairs Accessibility Scheme) continue to progress to plan. |
| We will drive the decarbonisation of transport through the promotion of modal shift of passengers and freight from road and air to rail. | Plans for decarbonisation and rolling stock procurement continue to be developed and refined. The Outline Business Case for the Suburban Fleet Procurement was endorsed by Investment Decision-Making Board, subject to the updating of the Management and Commercial case. |
| We will plan for and respond to resilience challenges and planned major events as they effect Scotland’s strategic transport network. | A review of resilience processes is in progress and existing vacancies being progressed to sustain team and support wider TS/SG resilience outcomes. UCI successfully supported and planning for future events taking place, including the Interpol Conference. |
Help deliver inclusive economic growth
| Commitment | Action |
|---|---|
| We will support sponsor bodies, Scottish Rail Holdings, Caledonian Maritime Assets Ltd (CMAL), David MacBrayne Ltd, Highlands and Island Airports Ltd (HIAL) and Scottish Canals to ensure all necessary action is taken to allow each Board to deliver on Scottish Ministers objectives including financial stewardship and governance oversight of each individual body. | Review of Transport Scotland Sponsored Bodies Framework Documents with ongoing bespoke support being provided to each as required. |
| We will work with Scotland’s airports to help restore lost connectivity, and grow international connectivity, while not returning to previous levels of emissions. | Analysis of routes we have supported to determine economic impact of route development to inform future support actions has commenced. |
| We will continue development of an aviation strategy and help to develop Scottish Government policy on sustainable aviation fuel (SAF). | The first meeting of the SAF working group took place on 15 February 2024, involving a range of stakeholders. Further meetings are to be arranged to support policy development in 2024-25. |
| We will support the enabling environment for bus transformation through delivery of the Bus Partnership Fund, Transport (Scotland) Act Powers and Community Bus Fund. | Secondary legislation to enable bus franchising and partnership options came in to force on 4 December 2023, meaning we have now commenced all the bus powers within the 2019 Act. The Bus Partnership Fund has delivered bus gates, enforcement cameras and traffic light equipment to help buses get through them more quickly in North Ayrshire, Glasgow, Inverness, and Edinburgh. |
| We will develop options and take steps to ensure service continuity on the Clyde and Hebrides ferry network until the next generation of the contract has commenced. | Project Board and Governance Board meetings continue, and we continue our engagement with CMAL and CalMac Ferries Ltd (CFL). |
| We will develop and procure the next generation of the Clyde and Hebridean Ferry Services (CHFS) contract, building on lessons learned from previous contracts, and the knowledge gained through ongoing stakeholder engagement. | Minister for Transport statement to the Scottish Parliament in November 2023 followed by further stakeholder engagement events in January to March 2024. |
| We will continue to manage the Clyde and Hebrides and Northern Isles Ferry Service Contract. | Contract management has continued in preparation for award of new contract. |
| We will deliver an investment programme for vessel replacement and associated port and harbour infrastructure. | Islands Connectivity Plan – Vessels and Ports Plan consultation launched on 31 January 2024 with community engagement programme commencing in February 2024. MV Isle of Islay Launched in March 2024. |
| We will continue to progress the A9 Dualling programme between Perth and Inverness; take forward a transport enhancement programme on the A96 corridor; and conclude the A96 Corridor Review. | In December 2023, a delivery plan for the completion of A9 Dualling was announced in the Scottish Parliament. Procurement for the £184.7 million Tomatin to Moy section commenced in Autumn 2023 with the contract awarded in July 2024. An MSP engagement briefing session took place in January 2024 and stakeholder briefing event and public drop-in sessions across the route in February 2024 with an A9 Dualling website launched. Pass of Birnam to Tay Crossing detailed development continued including assessment of the preferred route option, which will culminate with the publication of draft Orders by Spring 2025 for comment. Preferred route public exhibitions held in Birnam on 29 and 30 January 2024. A96 Inverness to Nairn – continued to progress preparation for publication of Made Orders in March 2024. |
| We will progress the Medium-Term Solution and announce the preferred route for the Long-Term Solution for the A83 Access to Argyll and Bute. | Continued development of medium-term solution proposals, including a detailed programme and procurement strategy. Short term improvement measures at the Rest and Be Thankful – A83 were completed in year while we progressed the design and assessment of the permanent solution to landslip risks. Construction of Phase 1 of the medium-term improvements to bring increased resilience to the route commenced and are currently ongoing. |
| We will strive to secure a safe and efficient performance and capability for Scotland’s Railway infrastructure through the regulatory process. | Dedicated event held with the Office of Road and Rail, Network Rail, and Scottish Rail Holdings to progress key requirement of Scottish Ministers on train performance. Enhanced governance arrangements are being developed to provide greater assurance for Scottish Ministers on Value for Money and improved monitoring and reporting of the high-level output specification requirements for the rail sector in Scotland. |
| We will protect, promote, and enhance the devolved responsibilities of Scottish Ministers for Scotland’s Railway, including through engagement with wider UK Government on rail reform process. | Following the February 2024 UK Government announcement of pre-legislative scrutiny on their draft Rail Reform Bill, we are identifying opportunities for effective further engagement on the reform process. |
| We will ensure that arrangements are in place to maintain the delivery and development of Caledonian Sleeper services. | Transition of Caledonian Sleeper services to publicly owned arrangements completed in June 2023. |
| We will continue to safely operate and maintain Scotland’s trunk road and bridge network using established and robust asset management and environmental principles. | Structural Maintenance Programme for 2023‑24 approved and work commenced on 2024-25 programme. 2023 State of the Asset Report completed. Propping working continues on the M8 Woodside Viaduct. |
| We will grow supply chains, skills, and innovation in zero-emission mobility ensuring Scotland will maximise benefits from the move to net zero through green jobs and just transition. | Distributed Energy Resources (DERs) project activity within Transport Scotland complete and kit operational on site. LOCATE project closed and activity ongoing to repurpose kit procured with grant funds to recuperate costs, work being undertaken by St Andrews University. |
| We will publish an investment plan for transport, following the conclusion of STPR2. | STPR2 delivery plan development continued with further capital spend forecasting created and refreshed Investment Decision Making Board (IDM) Checklist provided to improve decision making. |
| We will lead work for Transport on the UKG Bill and subsequent Scottish Parliament processes for the repeal of Retained EU Law; and to lead and coordinate the Transport Scotland input to any UKG transport-related bills being progressed. | Preparation for repeal of Retain EU Law work progressed and replacement legislation around public service obligations completed. |
Improve our health and wellbeing
| Commitment | Action |
|---|---|
| We will promote a modal shift to active and sustainable travel through joined-up infrastructure, behavioural interventions, and equal access to bikes. | Throughout 2023-24 we have invested over £15 million in ‘access to bikes’ interventions to ensure that those individuals who face barriers to making Active Travel choices, have a better chance to participating. We have invested £16 million specifically on behaviour change interventions that aim to maximise the benefits for infrastructure interments by promoting change directly in communities. |
| We will improve delivery, investment, and governance of Active Travel through the introduction and implementation of recommendations for Active Travel Transformation. | In 2023-24 the Active Travel Transformation programme tested new methods for the distribution of investment to Local Authorities, both under the Verity House Agreement and through a tier distribution model. Launched in December 2022, the Active Travel Transformation Fund (ATTF) provided over £13 million grant funding to partners to support the delivery of eligible construction-ready projects and design of active travel schemes throughout 2023-24. |
| We will demonstrate environmental sustainability through the delivery of environmental protection, community benefit, climate change mitigation/adaptation and air quality initiatives across our operations, projects, and maintenance activities. | LEZ awareness campaigns commenced. Trunk Road Adaptation Plan and the Trunk Road Network Natural Capital baseline assessment and accounts are both completed. Development of a Net Zero Road Map for the Trunk Road Network within our Carbon Management Plan commenced. Carbon sequestration sites underway at A83 Rest and be Thankful, Blacklaw Woodand and M80 Mollinsburn Woodland. Work continuing on the promotion of Natural Capital and the development of a Biodiversity Strategy. |
| We will work with key stakeholders and partners to implement the Road Safety Framework to 2030 to support the delivery of the safe system and the targets to halve road fatalities and serious injuries by 2030. | Programme development ongoing across active travel casualty reduction and safety camera teams. Initial driver distraction camera trial completed. PRIMEs project update to Road Safety Trust (RST) and ongoing scheme delivery for guidance document and wider roll-out in future years. |
| We will continue to manage, maintain, and develop the Traffic Scotland Service and the provision of accurate and relevant traffic and travel information to customers through roadside display equipment, variable message signs, and web services, contributing to the safe, efficient, and resilient operation of the trunk road and motorway network. | Traffic Scotland System continues to provide accurate and relevant information to customers to support safe operation of the Trunk Road and Motorway Network. |
| We will support Scotland’s first Low Emission Zone enforcement scheme in Glasgow and work towards the introduction of Low Emission Zones in Edinburgh, Dundee, and Aberdeen in 2024. | Enforcement of the Low Emission Zone in Glasgow commenced on 1 June 2023 following launch of our LEZ Vehicle Registration Checker in April 2023 and preparation for enforcement in Dundee, Aberdeen, and Edinburgh in 2024 complete. |
Putting our people at the heart of our delivery
| Commitment | Action |
|---|---|
| We will monitor and improve upon wellbeing, particularly mental health by offering strategic interventions to build the mental resilience and wellbeing of all colleagues in the organisation. | The Senior Management Team continue to receive a range HR management information to inform their proactive management of wellbeing issues within their business areas enabling appropriate targeted action. A wellbeing lead has been appointed to drive this work and has delivered wellbeing sessions across the agency. We have also developed a Wellbeing Strategy & Action Plan that will ensure targeted action continues in support of our drive to improve the health and wellbeing of colleagues. |
| We will support the move of HR and Finance data to Oracle Cloud to create a joined-up service, with improved data and insight. | The Scottish Government programme is currently progressing for implementation in October 2024. Transport Scotland remains in close contact with Scottish Government colleagues. |
| We will provide media, corporate and digital communications services to the agency and Ministers. | A comprehensive media planner and communications strategy has been introduced with strengthened teams across our communications services. |
| We will provide guidance, advice, supporting policies and services to ensure Transport Scotland complies with its statutory responsibilities and functions in an effective and efficient manner. | HR, health and safety, data protection, financial and communications advice has been provided throughout the year, both through proactive internal publication and events, engagement through committees and boards, and in response to enquiries. |
| We will procure, manage, and deliver a full fit-out programme for our new headquarters at 177 Bothwell Street, Glasgow. | The Senior Management Team agreed our approach to this project which follows the RIBA Plan of Work, we have a design team in place led by our project managers with the overall design detail agreed. Work has now begun on the final phase of the project, procuring fit out contractors to deliver the final design. |
| We will ensure we are undertaking high quality analysis and providing evidence-based advice across the transport portfolio, to inform policy decisions within and affecting transport. | Pilot removal of peak rail fare evaluation interim results produced to inform future strategy. Publication of output from women’s and girls’ safety on public transport event in March. Work ongoing on monitoring on the NTS and accessible and active travel frameworks. Active Travel Funding mechanism refreshed in February 2023. Analytical support provided for Concessionary Reimbursement. |
| We will take forward the Organisations transformation programme which aims to make us more resilient, delivery-focussed and flexible and will align with our Civil Service values. We will work inclusively with staff to develop options for structural change that better balance workload, staff professions and availability of resources helping create softer boundaries between teams to bring efficiencies. | Updates on the development work continue to be provided to staff as the programme progresses towards delivery. |
2023-24 financial performance
Financial performance and use of resources
The purpose of this section is to summarise financial performance against budgets for the 2023-24 financial year. Transport Scotland receives the majority of its funding from the Scottish Government. In addition, a small amount of operating income is also generated (Note 5). During 2023-24, total income reported was £13.6 million and funding received from the Scottish Government was £3.5 billion reflected in our revised budget (HMT Total).
The original budget allocated to Transport Scotland in the 2023-24 Budget Bill was £3.58 billion. Transport Scotland’s overall budget includes its Non-Departmental Public Bodies (NDPBs) Highlands and Islands Airports (HIAL), David MacBrayne (DML), Scottish Canals and Scottish Rail Holdings (SRH). The expenditure of NDPBs is reported in Transport Scotland’s consolidated HMT budgets in the same way as Transport’s Scotland’s own spending. Scottish Government funding is accounted for in the Scottish Government accounting system (SEAS) but there are further accounting adjustments in the NDPBs that are reflected in Transport Scotland’s overall HMT outturn. The amounts shown in all the tables below show all expenditure and accounting adjustments to reflect the total HMT budget envelope that Transport Scotland is accountable for. During the year, budgets are subject to revision and adjustment via the Scottish Government Autumn Budget Revision (ABR) and Spring Budget Revision (SBR) processes.
The table below shows the movement in our overall budget and comparison with realised outturn for 2023-24.
| Original Budget 2023-24 £000s | Revised Budget 2023-24 £000s | Outturn 2023-24 £000s | Variance £000s | |
|---|---|---|---|---|
| Rail Services | 1,418,262 | 1,430,777 | 1,351,350 | (79,427) |
| Bus Services | 425,693 | 396,051 | 393,191 | (2,860) |
| Motorway and Trunk Roads | 775,769 | 768,408 | 740,639 | (27,769) |
| Ferries | 439,970 | 393,254 | 385,115 | (8,139) |
| Air | 73,977 | 68,877 | 67,194 | (1,683) |
| Other Transport | 346,334 | 220,126 | 197,644 | (22,482) |
| Local Authority Grants | 58,454 | 83,429 | 90,863 | 7,434 |
| Total SG Funding | 3,538,459 | 3,360,922 | 3,225,996 | (134,926) |
| HMT Adjustments | 40,145 | 142,057 | 177,037 | 34,980 |
| HMT TOTAL | 3,578,604 | 3,502,979 | 3,403,033 | (99,946) |
Other Transport includes: Sustainable and Active Travel and Low Carbon expenditure.
Outturn analysis
| Budget Classification | Revised Budget 2023-24 £000s | Outturn 2023-24 £000s | Variance £000s |
|---|---|---|---|
| Resource | 1,435,534 | 1,385,381 | (50,153) |
| Capital | 1,746,255 | 1,729,140 | (17,115) |
| Non-Cash | 302,493 | 301,098 | (1,395) |
| AME | 18,697 | (12,586) | (31,283) |
| HMT TOTAL | 3,502,979 | 3,403,033 | (99,946) |
Outturn variances – summarised by type
| 2023-24 £000s | |
|---|---|
| Total Outturn Variance | (99,946) |
| of which: | |
| Technical accounting adjustments (provisions) | (31,283) |
| Non-cash | (1,395) |
| Rail Resource | (19,276) |
| Rail Resource – one-off receipt | (23,853) |
| Other Resource | (7,024) |
| Bus and Active Travel Capital | (19,470) |
| Other Capital | 2,355 |
| Total Outturn Variance | (99,946) |
Overview
As can be seen from above, £55.1 million or 55.1% of the overall underspend related to technical accounting adjustments in relation to provisions and a one-off adjustment in rail.
Resource outturn of £50.1 million underspend was largely delivered by a one-off and non-recurring receipt received from the finalisation of the close-out of the Abellio ScotRail Franchise and increased rail passenger revenue. To a more minor extent, in the final quarter of the year, there were late changes to the National Support Grant and Concessionary Travel demand forecasts in Bus Directorate and the impact of extreme weather events, prohibiting planned road maintenance programmes, increased the net positive impact further.
Capital savings have also contributed to the overall fiscal position and planned activity resulted in managing the position to less than 1% variance from budget.
Capital underspend resulted from late notification by some delivery partners of grants that could not be fully claimed in year, some minor savings in capital investments at HIAL, and the impact of extreme weather events on planned road investment that crystallised in the final quarter.
The Annually Managed Expenditure (AME) variance of £31.3 million underspend against the budget of £18 million represents a number of accounting adjustments to release previously made provisions where the liability had crystallised or, upon reconciliation, were no longer required.
The Statement of Comprehensive Net Expenditure (SoCNE) on page 122 records net operating costs of £3.033 billion. The total underspend of £100 million (2022-23: £267 million underspend) represents approximately 2.8% (2022-23: 6.2%) of the overall budget.
Capital expenditure and HMT Adjustments in NDPBs are not recognised as in-year expenditure within the SoCNE, and the table below provides a reconciliation of overall outturn to the SoCNE.
| 2023-24 £000s | |
|---|---|
| Net Operating Costs from SoCNE | 3,032,784 |
| Add HMT Adjustments that do not go through the SoCNE | 177,037 |
| Add: Additions to PPE (Note 6) | 138,217 |
| Add: Additions to Right of Use (Note 7) | 2,231 |
| Add: Additions to Intangible Assets (Note 8) | 70 |
| Add: Additions to Investments (Note 9) | 63,920 |
| Less: Repayments of Investments (Note 9) | (11,225) |
| Outturn | 3,403,033 |
The majority of Transport Scotland’s budget is spent, either directly or indirectly, with external suppliers. Only 1% is utilised on the ongoing agency running costs, i.e. staff and premises. The chart below shows the percentage spent by Directorate in 2023-24.
Statement of Financial Position analysis
Transport Scotland’s asset base is £28.4 billion, the majority of which relates to the trunk road network (£27.4 billion). Increases in the balance this year primarily relates to the increase in value of the trunk road network and an increase in Voted Loans issued. As at 31 March 2024, Transport Scotland did not hold any assets available for sale.
There has been an increase in financial assets of £63.6 million which is mainly driven by an increase in voted loan funding.
There has been a decrease in provisions of £18.6 million which is driven mainly by the settlement of land payments and the release of provisions no longer required.
There has been a decrease of £10 million within trade and other receivables and an increase of £26 million within trade and other payables in year. The main reason for the increase in payables is due to the level of accruals in year. As at 31 March 2024, the accounts record accruals totalling £237 million (2022-23: £222 million) which is linked to the timings of payments on specific contracts.
There has been a decrease of £41 million within non-current liabilities due to the progression of PFI contracts reducing the time period remaining in these contracts.