“With the Sleeper franchise ending on 25 June 2023, we have carefully assessed the options for successor arrangements in accordance with the current legislative framework and our Franchising Policy Statement.

“Having regard to continuing uncertainty regarding market conditions, travel behaviours and ongoing UK rail reform, it was decided that a Direct Award was not viable and that Sleeper services should instead be provided by the Scottish Government in line with their Operator of Last Resort duty.

“That is why I have confirmed that, from the expiry of the current franchise, Caledonian Sleeper services will be provided through Scottish Rail Holdings, a company wholly-owned and controlled by the Scottish Government. This approach will provide a stable platform for Sleeper services and certainty for passengers and staff.”