Costs of keeping funicular going may outweigh its benefits, say MSPs

The costs of keeping the UK's highest railway running could outweigh its economic benefits, MSPs have warned.

The Cairngorm funicular opened in 2001 at a cost £19.5m but in recent years it has been closed for lengthy periods of time with the Scottish government providing £16m towards the total cost of repairs.

Holyrood's public audit committee has raised concerns that regular monitoring and maintenance of the railway could become "disproportionate" to its benefits.

Public body Highlands and Islands Enterprise (HIE), which owns the funicular, said it welcomed the committee's scrutiny and was "always conscious" of the need to obtain value for money in all its projects.

The railway, near Aviemore, connects a base station with a restaurant and a ski area 1,097m (3,599ft) up Cairn Gorm - the UK's sixth highest mountain.

In February last year, the funicular returned to service following an extensive programme of work.

It had been closed for four years from September 2018 due to structural issues with the track.

It was reopened to the public in January 2023 following repairs totalling £25m before it was closed again in August that year due to snagging issues.

The committee has called on the Scottish government to be "more transparent" about its plans for the funicular and to ensure the project remained value for money.

MSPs said they had been frustrated about the level of information made available to them to take a judgment on HIE's decision-making on the future of the funicular.

The report called on the Scottish government agency to make "significant improvements" in this area, as well as ensuring that the governance arrangements in place for the railway were simplified.

Committee convener Richard Leonard said: "It is safe to say that the Cairngorm funicular has had a somewhat troubled history, with repeated and lengthy closures and requiring significant public investment.

"This committee has heard from those in charge of the funicular, the public bodies supporting it, those living and working in the area and nature conservation activists.

"We have heard both optimism and scepticism about what comes next. And it presents a picture of concern for us that the future benefits are not as clear as they ought to be."

HIE said it would reflect on the committee's recommendations around simplified governance structures for the running of the railway.

A spokesperson said "strong leadership and management" was in place and the funicular had carried 150,000 people, including 28,000 skiers, since April 2025.

They added: "We are always conscious of the need to obtain value for money in all our projects across the Highlands and Islands.

"As a publicly-owned asset for Scotland, Cairngorm is no exception."