Michael Matheson

Abellio has been running the franchise since 2015 but has faced increasing levels of criticism over cancellations and performance levels.

ScotRail runs around 2,400 train services per day and covers all services in Scotland except those run by other operators which cross the border.

The contract issued to the Dutch firm, worth over £7 billion over a decade, was due to last until 2025, but Mr Matheson said a “break-clause” would be utilised to end the contract three years early in 2022, the BBC reports. 

The transport secretary told MSPs that he was looking at other options for the future, including the ScotRail franchise being run by the public sector.

He said Abellio had “successes and challenges” over the first five years of the franchise, but emphasised that his decision was the correct one for “passengers, communities, the economy and taxpayers”.

The contract with Abellio will now run until 31 March 2022.