Moray Council Recommended to Opt Out of Scotland £2 Bus Fare Cap Pilot

Moray Council-operated bus services are being advised not to participate in Transport Scotland’s £2 regional bus fare cap pilot, according to a report due before the council on 25 February.

The pilot, which began in Shetland on 30 January, will expand across the Highlands and Islands, managed by the HiTransand ZetTrans, and is supported by £10 million in fare subsidies and £3 million for administration from Transport Scotland. Participation is optional for operators.

A report from Donald MacRae, Public Transport Manager, highlights concerns over reimbursement for Moray Council’s m.connect demand-responsive and fixed-route services.

Key issues include:

• Unclear reimbursement rates: Unlike mandatory National Entitlement Card schemes, which reimburse 47.9p–72.4p per pound, the fare cap pilot may not fully cover operational costs.

• Administrative burden: Payments would be made in arrears via monthly grant claims, unlike NEC transfers, which pay 90% immediately.

• Financial risk: Participation could result in the council subsidising the service due to low fare-payer numbers (only 5–6% of m.connect users currently pay fares).

The report stresses that any lack of participation by Moray Council will not affect other operators in the pilot. It also recommends that Transport Scotland provide 100% reimbursement for non-commercial services if councils are to participate.

Concerns about reimbursement are consistent with feedback from other regions, including Dumfries and Galloway, where operators cited financial and operational risks as barriers to participation.

Transport Scotland hopes the fare cap will improve affordability, accessibility, and resilience of bus services across Scotland, but financial uncertainty has prompted Moray Council to consider opting out.