A "new era" has started for the Caledonian Sleeper as it enter public ownership on Sunday, the transport minister said. 

The cross-border service had been operated by outsourcing firm Serco before MSPs ended its contract early. 

Serco's £800m agreement had been due to run until 2030, before the firm attempted to renegotiate its contract. 

The rail service, which offers overnight sleeper trains between Scotland and London, will be run through an arm’s length company owned and controlled by the Scottish Government from June 25.

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The new beginning was also hailed by rail union RMT with its general secretary stating that "improving services" should be at the heart of the new ownership. 

Mick Lynch said: "With all of its rail passenger services now in public ownership, the Scottish Government needs to commence the long-awaited national conversation on rail without delay.

"At the heart of this must be investment in expanding and improving services, ruling out cuts to ticket offices and properly staffing Scotland’s railway to make it accessible for all."

Transport minister Fiona Hyslop said: "Today sees the start of a new era for the Caledonian Sleeper as the services come into public ownership, in line with our Operator of Last Resort duty. 

“The decision to mobilise Operator of Last resort arrangements, announced to Parliament earlier this year, followed an extensive review and consideration of the options available to provide Caledonian Sleeper services beyond June this year, when the current franchise expires.

"This review was conducted against the background of substantial uncertainty regarding future market conditions and the pace and impact of the UK Government’s rail reform process."

The MSP also praised the staff and management "who have transformed this service". 

She assured them they would "remain as valued members of the team". 

"I give my reassurances that there is a continued role for them to play in the future success of the service," she added.

“In recent years, the Caledonian Sleeper has flourished, with increasing numbers of people using its unique journey opportunities. The service plays an important role in showcasing the best of Scotland and I look forward to building on that success in the years to come.”