On track: Scottish rail spending being transferred

The government has announced it is to hand over control of £325 million in rail spending to the Scottish executive.

The move comes as the Railways Bill devolves responsibility for rail strategy to the Holyrood executive.

It will monitor and manage the Scotrail franchise and specify rail infrastructure needs in Scotland.

Ministers will also be able to set fares and fund improvements to the railway.

The legislation, however, leaves safety and the licensing of railway operators in the hands of UK ministers.

Jack McConnell welcomed what he described as the "most significant devolution of new powers to Scottish ministers since 1999".

Transport secretary Alistair Darling said the move would improve Scottish railways.

"It is clear that the Scottish Executive is best placed to decide what is right for Scotland's railways," he said.

"The significant funding transfer I am announcing today will enable the SE to carry out its new powers effectively and represents the government's long term investment in and commitment to the railways."