Scotland's train services are to be run by a public sector body, the Scottish government has announced.

Dutch firm Abellio will stop running the ScotRail franchise at the end of March next year.

After this an "arms-length" Scottish government company will take over the running of services.

Abellio has been running the franchise since 2015 but had its contract ended early amid criticism over cancellations and performance levels.

All ScotRail staff will transfer to the new Scottish government-owned entity.

The arrangement is being made under powers which allow the Scottish government to take over the rail franchise without a bidding process.

Transport Secretary Michael Matheson said he was not able to say how long these "operator of last resort" arrangements would last for.

He said: "I have decided that it would not be appropriate to award a franchise agreement to any party at this time, either through a competition or a direct award.

"That is why I have confirmed that, from the expiry of the current franchise, ScotRail services will be provided in public hands through a company wholly owned and controlled by the Scottish government.

"This approach will provide a stable platform for ScotRail services and certainty for passengers and staff."

Scotland's railways have already been temporarily nationalised since March last year to help the service cope with the impact of coronavirus.

The Scottish government has spent £452m in support for ScotRail, along with the Caledonian Sleeper, after passenger numbers dropped dramatically as a result of lockdown restrictions.

Mr Matheson described Abellio's time in charge of ScotRail as "a difficult period" which had confirmed the franchise system was "broken and not working in the taxpayers' interest".

source: BBC News