Plans to further expand Edinburgh's tram network have taken their biggest step forward yet with the launch of a public consultation this week.
But as the capital's residents are asked to choose between two potential routes - one along a much-loved pedestrian path, the other crossing a historic A-listed bridge - one question looms even larger: who's paying?
The latest estimate puts the bill for a new line linking the north and south of the city between £2 billion and £2.9 billion, depending on the route taken forward.
This dwarves the £207m spent on the (much shorter) extension from the city centre through Leith to Newhaven, funded through borrowing paid back through future tram fares, which opened in 2023.
Spending eye-watering sums on tramway construction remains a touchy subject in Edinburgh, more than 10 years after the ribbon was cut on the Airport to York Place Line - a project beset by delays, disruption, and a ballooning budget that grew from £375m to over £1bn.
In a city where that fiasco is still fresh in many minds - and run by a local authority increasingly struggling to fund basic public services - politicians have been keen to reassure residents that the hard-earned money they pay the council each month will not be spent on more trams.
Most notably in 2022, then Edinburgh Council leader Cammy Day committed "that there should not be council tax money spent on this," saying funding for capital infrastructure "needs to come from Transport Scotland and the governments that fund this council".
Read more:
However, when asked to reaffirm that commitment this week, current council leader Jane Meagher said she was unable to do so.
She said: "Until I know two things, one is the outcome of the consultation and consequently the intended route for the tram, and consequent to that the cost of any tram extension, then I think it would be remiss of me to make any such promise at this stage until I have a clearer idea of what the plan would be.
"Clearly too it’ll be future administrations of this council that would be responsible for taking any tram extension forward."
Cllr Meagher was taking questions from councillors during a City Chambers meeting on Thursday, August 28. She said the consultation had received over 2,000 responses in its first few days.
Asked where the billions for a north-south tram line would come from and whether she could justify the £44m cost of developing a business case for the project, she said: "Any European city that I’ve visited has a tram network and it’s vital for the infrastructure of any city."
She said: "If we are going to achieve our ambitious and environmental targets then we have to be very serious about what kind of public transport offering we have and tram has to be part of that."
Meagher added she would "look into funding options if that would help," which was met with a burst of laughter from some in the chamber. "Sorry if you find that risible," she replied, "I don’t mean that I personally will look into funding options... I will come back to you."
A third question on the subject from Lib Dem Kevin Lang, a staunch supporter of the campaign to save the Roseburn Path from being used as part of the route. He asked whether the council leader would cap the amount of council tax income "she would be prepared to spend on the tram extension".
Meagher said: "Until we know the scope of the tram extension it’s impossible to assess what kind of commitment financial commitment will be needed on any part."
Whatever that sum is, if any council tax receipts end up going toward the tram extension, it will barely scratch the surface of the nearly £3bn the project could eventually cost.
The reality is that without huge levels of investment from the Scottish Government it will never become a reality.
This was acknowledged by the council's chief executive Paul Lawrence in an interview with The Herald in June.
“A new tram line will need direct investment from the government, there is no question about that," he said. "You will not be able to build that at scale otherwise."
Tram lines built elsewhere in the UK have been able to take advantage of land value capture where new developments benefiting from the line help fund it through planning fees or tax increment financing.
"That’s more difficult to do in a dense, already urban built city like Edinburgh," Lawrence said.
"So while there are mechanisms we can look at, there is no question that for us to take the tram forward will need some very tough decisions from the Scottish Government to prioritise mobility in a major city like Edinburgh."
Read more:
-
'What if I forget to tap off?' the new Edinburgh trams 'tap on, tap off' system
-
Edinburgh Trams ticket prices to rise due to 'operational costs'
-
'Remarkable': Edinburgh Trams records more than 12 million customer journeys in 2024
But as of May last year, such support from the Scottish Government was not considered "affordable in the current fiscal climate" according to Transport Secretary Fiona Hyslop. That position does not appear to have shifted since.
"It may be that alternative public/private delivery models need to be explored by CEC, which could be considered as part of the business case process," Ms Hyslop's letter to Edinburgh Central MSP Angus Robertson said.
Alternative delivery models, such as private financial initiatives (PFI) where private companies help fund construction with repayment over time, are open to the city. But they bring added financial and operational risks.
Christian Wolmar, one of the UK's leading transport experts, said he was "sceptical" about projects going down this route.
"If you’re trying to get the private sector involved, it tends to be a very expensive way of raising money," he said.
"At the end of the day you probably have to bite the bullet and pay for it. The idea you’d get much private money for it is fanciful. You can secure it as part of the fare income, but the risk is always with the government if you’re honest about it."
Share