Edinburgh Tram Inquiry
CompletedPublic inquiry into why the Edinburgh Trams project was delivered late, over budget, and with a reduced scope. The project cost £776m against an original estimate of £375m and took 5 years longer than planned.
8 years, 10 months
Duration
£13.2m
Total Cost
100
Witnesses
160
Hearing Days
7
Core Participants
6,000,000
Documents
961
Report Pages
Reports (1) Click to expand
| Title | Volume | Publication Date | Recs | Links |
|---|---|---|---|---|
| Edinburgh Tram Inquiry Report | Final Report | 01 Aug 2023 | 24 |
Timeline (6) Click to expand
05 Jun 2014
Inquiry Announced
Scottish Ministers established an inquiry into the Edinburgh Tram Project.
Source
03 Jul 2014
Chair Appointed
Lord Hardie appointed as Chair.
08 Sep 2014
Terms of Reference Set
Inquiry to examine why project was delayed and over budget.
09 Mar 2017
Hearings Begin
Evidence hearings commenced.
31 Jan 2024
Government Response
Scottish Government response to recommendations.
Recommendations (24)
Public Inquiry Efficiency
Recommendation
Scottish Ministers should review public inquiries to find cost-effective methods of avoiding establishment delays, potentially creating a dedicated unit within the Scottish Courts and Tribunals Service and publishing updated guidance.
Published evidence summary
According to gov.scot on 24 Nov 2025, the Scottish Government published "Public inquiries: Guidance for Ministers and officials on whether an inquiry should be established" on 24 November 2025, which sets out considerations for establishing inquiries, including cost and timing. According to the Transport Secretary Statement, 2 Nov 2023, the Transport Secretary had stated on 2 November 2023 that similar guidance was already in development and had been shared with recent inquiries.
Scottish Government
(Primary)
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Inquiry Independence
Recommendation
Scottish Ministers must not appoint any department, agency, or government organization as inquiry sponsor where it or its employees had involvement in the project under investigation.
Published evidence summary
According to the Scottish Government's publication, "Public inquiries: Guidance for Ministers and officials on whether an inquiry should be established" on 24 November 2025, considerations for Ministers and officials when deciding whether to establish an inquiry are set out, including independence (gov.scot, 24 Nov 2025). According to the Transport Secretary Statement on 2 November 2023, similar guidance was already in development (Transport Secretary Statement, 2 Nov 2023).
Scottish Government
(Primary)
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Staffing Guidance
Recommendation
Guidance should address: circumstances for civil servant transfers within government; which positions may use agency staff; and whether temporary contracts suit positions unfillable by permanent staff.
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, guidance addressing circumstances for civil servant transfers, use of agency staff, and temporary contracts was already in development. No specific published guidance document has been identified since this statement.
Scottish Government
(Primary)
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Inquiry Cost Transparency
Recommendation
When reporting public inquiry costs, Scottish Ministers should disclose net costs to the public purse, excluding previously-incurred accommodation and staffing expenses, alongside total departmental account costs.
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, guidance similar to that suggested for reporting public inquiry costs was already in development. The Scottish Government published updated guidance titled 'Public inquiries: Guidance for Ministers and officials on whether an inquiry should be established' on 24 November 2025, which is likely to address cost transparency for inquiries.
Scottish Government
(Primary)
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Business Case Timing
Recommendation
Where Business Cases assume pre-contract completion of design, approvals, or utility diversions, contract negotiations should await completion; otherwise, a revised Business Case reflecting actual conditions must be prepared before signing.
Published evidence summary
According to the Scottish Government statement on 2 November 2023, the Scottish Government stated on 2 November 2023 that it already operates in line with best practices for governance and light rail delivery, which includes ensuring contract negotiations await completion of design, approvals, or utility diversions, or that a revised Business Case is prepared. According to the City of Edinburgh Council on 16 November 2023, the City of Edinburgh Council formally adopted this recommendation on 16 November 2023, noting that these principles were applied successfully in the Trams to Newhaven project.
Scottish Government
(Primary)
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Optimism Bias in Business Cases
Recommendation
All Business Case versions must include risk assessments accounting for optimism bias per published government guidance.
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, it already operates in line with best practices for governance and light rail delivery, which includes incorporating risk assessments accounting for optimism bias in all Business Case versions. This indicates that the recommended practice is considered to be current standard procedure.
Scottish Government
(Primary)
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External Peer Review
Recommendation
Each Business Case risk assessment should undergo peer review by external consultants experienced in large-scale transportation infrastructure, submitting reports sufficiently before contract signature.
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, it already operates in line with best practices for governance and light rail delivery, which includes subjecting each Business Case risk assessment to peer review by external consultants experienced in large-scale transportation infrastructure. This indicates that the recommended practice is considered to be current standard procedure.
Scottish Government
(Primary)
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Update Optimism Bias Guidance
Recommendation
Optimism bias guidance, based on decades-old data, requires updating to include light rail projects and reflect current empirical evidence, with reviews every five years.
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, while it already operates in line with best practices, it would consider updating optimism bias guidance to include light rail projects and reflect current empirical evidence. No specific updated guidance document has been identified since this statement.
Scottish Government
(Primary)
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Risk Management Standards
Recommendation
Risk identification and management should be integral to major public-sector contracts, employing probabilistic forecasts, critical review of mitigation claims, constant governance challenge, early warning detection, and quality-focused evidence rather than process emphasis.
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Published evidence summary
According to the Scottish Government's statement on 2 November 2023, it already operates in line with best practices for governance and light rail delivery, which includes robust risk identification and management. According to the City of Edinburgh Council's formal adoption on 16 November 2023, improvements in communication, independent oversight, and expert advice on major projects were highlighted, and there was a commitment to a review of risk management across its major projects.
Scottish Government
(Primary)
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Joint Working Group with COSLA
Recommendation
Scottish Ministers should establish a joint working group with Convention of Scottish Local Authorities representatives to leverage Transport Scotland's project management experience and expertise for light rail projects.
Published evidence summary
According to the Transport Secretary Statement, the Scottish Government accepted this recommendation in principle, stating its commitment to effective collaboration with local authority partners and referencing the Verity House Agreement (Transport Secretary Statement, 2 Nov 2023). However, no specific evidence of the establishment of a joint working group with COSLA for light rail project management expertise has been identified in public sources since the November 2023 response.
Scottish Government
(Primary)
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Public Fund Protection
Recommendation
Scottish Ministers and local authorities funding light rail should protect public funds through: conditional grant payments with review hold points; critical review and approval of Business Cases and contracts; involvement in project delivery; and requiring local authority compliance with Transport …
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Published evidence summary
According to the Transport Secretary Statement (2 Nov 2023), the Scottish Government accepted this recommendation in principle, emphasising its commitment to effective collaboration with local authority partners, citing the Verity House Agreement. The government also clarified that project delivery responsibility remains with local councils. However, no specific evidence of new policies or procedures implementing conditional grant payments, critical review of business cases, or mandated compliance with Transport Scotland procedures for light rail projects has been identified in public sources since the November 2023 response.
Scottish Government
(Primary)
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Record Keeping Requirements
Recommendation
For transparency, Scottish Ministers should maintain minutes documenting: discussions and decisions between Ministers and civil servants regarding publicly-funded project involvement; discussions with local authorities and contractors; and negotiations, including mediation discussions.
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Published evidence summary
According to the Transport Secretary Statement, the Scottish Government stated that robust and enhanced procedures regarding minute-taking and documentation management have been embedded within the Government and the Civil Service, confirming this recommendation as already operational practice (Transport Secretary Statement, 2 Nov 2023). While the government asserts these procedures are in place, no specific published policy or guidance document detailing these enhanced record-keeping requirements for publicly-funded projects has been identified in public sources.
Scottish Government
(Primary)
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Utility Diversion Planning
Recommendation
Light rail procurement strategies must adequately address utility location uncertainties, requiring route exposure and clearance well before construction, specifying elapsed time between clearance and commencement, considering route length and past UK experience.
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Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council adopted this recommendation, noting the successful 'one dig' approach for utility diversions on the Trams to Newhaven project, where diversions were completed immediately ahead of infrastructure works (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). The Council recommended that any future light rail project should adopt a clear procurement strategy for utility diversions. According to the Transport Secretary Statement, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement, 2 Nov 2023).
Scottish Government
(Primary)
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Utility Diversion Risk Management
Recommendation
While acknowledging utility diversion approaches, promoters should demonstrate adequate risk management proposals without prescriptive requirements regarding MUDFA versus bow wave methods.
Published evidence summary
According to the Transport Secretary Statement (2 Nov 2023), the Scottish Government stated that it already operates in line with best practices for governance and light rail delivery, which implicitly includes utility diversion risk management. This aligns with the City of Edinburgh Council's adoption of related recommendations and its practical approach to utility diversions on the Trams to Newhaven project, which involved managing risks associated with utility locations, according to the Chief Executive's report to Transport and Environment Committee (16 Nov 2023).
Scottish Government
(Primary)
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Qualified Project Management
Recommendation
Project promoters should appoint procurement and project managers with qualified, experienced permanent employees who have successfully delivered similar projects on time and within budget.
Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, 16 Nov 2023, the City of Edinburgh Council adopted this recommendation on 16 November 2023, acknowledging the Inquiry's findings of insufficient experience in the original tram project's delivery. According to the Chief Executive's report to Transport and Environment Committee, 16 Nov 2023, the Council committed to ensuring that demonstrable experience is secured for procurement and project managers in any future light rail delivery. No specific updated HR policies or examples of new hiring practices under this commitment have been identified in public sources since the adoption.
City of Edinburgh Council
(Primary)
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Design Engagement Process
Recommendation
Following designer appointment, continuous engagement with promoters, owners, project managers, planning authorities, utility companies, and affected landowners should clarify design criteria, with local planning authorities producing detailed design guidelines beforehand and collaborative resolution of design issues throughout.
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Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council accepted this recommendation on 16 November 2023, agreeing to produce detailed design guidance to assist design development and to collaborate with designers to resolve issues (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). According to the Council Leader, improvements in design engagement were already implemented for the Trams to Newhaven project (Council news release, 2 Nov 2023). However, no specific published detailed design guidelines or formalised continuous engagement processes have been identified in public sources since the Council's acceptance.
City of Edinburgh Council
(Primary)
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Governance Structure
Recommendation
The governance structure for the delivery of a major project such as a light rail scheme should follow published guidance and ensure clarity regarding the respective roles of various bodies and individuals. The chairman of the company responsible for procurement …
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Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council accepted this recommendation on 16 November 2023, agreeing that future governance structures for major projects should follow up-to-date guidance and clearly define roles and responsibilities (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). The Council also committed to seeking assurance that the chairman of a project delivery company is not also its chief executive. While the Council Leader noted improvements were already implemented for the Trams to Newhaven project (Council news release, 2 Nov 2023), no specific updated published guidance or formalised assurance processes have been identified in public sources since the Council's acceptance.
City of Edinburgh Council
(Primary)
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Effective Communication and Reporting
Recommendation
There should be effective communication and reporting at all stages of the project, including accurate progress reports to councillors and stakeholders, with clear escalation procedures for issues that may affect cost, programme or scope.
Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council accepted this recommendation on 16 November 2023, agreeing to support any future readiness review or audit of publicly funded projects to ensure a clear understanding of roles and responsibilities (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). While the Council Leader stated that improvements were already implemented for the Trams to Newhaven project (Council news release, 2 Nov 2023), no specific new internal communication protocols, reporting standards, or clear escalation procedures have been identified in public sources since the Council's response.
City of Edinburgh Council
(Primary)
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Collaborative Delivery
Recommendation
At all stages of the project there should be a collaborative approach to delivering it, including co-location of representatives from each organisation relevant to the particular stage, enabling issues to be addressed and resolved at the earliest opportunity, minimising risk …
Read more
Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council accepted this recommendation on 16 November 2023, noting that a collaborative approach, including co-location of representatives, was successfully adopted on the Trams to Newhaven project (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). According to the Council Leader, improvements were already implemented for the successful Trams to Newhaven project (Council news release, 2 Nov 2023), demonstrating the practical application of collaborative delivery.
City of Edinburgh Council
(Primary)
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Prohibition on Misleading Reports from ALEOs
Recommendation
The directors, employees and consultants of the company responsible for the procurement and delivery of the project as project managers, including an arm's-length external organisation (ALEO) wholly owned by the local authority that is the promoter and owner of the …
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Published evidence summary
According to the City of Edinburgh Council's independent evidence on 1 September 2025, the City of Edinburgh Council agreed a new Arm's Length External Organisation (ALEO) Governance Framework in March 2025, which aims to improve scrutiny of ALEOs and formalises the importance of candour in reporting, directly responding to the Inquiry's findings about misleading information (City of Edinburgh Council, 1 Sep 2025 independent evidence). According to the Chief Executive's report to Transport and Environment Committee, the Council had accepted this recommendation on 16 November 2023, noting that ALEO scrutiny had already significantly improved through 2012 and 2016 reforms (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023).
City of Edinburgh Council
(Primary)
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Duty of Officials to Councillors
Recommendation
Local authority officials should be mindful at all times of the distinction in roles between them and councillors, who are solely responsible for strategic decisions, and of their duty to provide accurate reports to councillors to enable them to take …
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Published evidence summary
According to the Chief Executive's report to Transport and Environment Committee, the City of Edinburgh Council accepted this recommendation on 16 November 2023, stating that its existing Member/Officer Protocol highlights the distinction of roles between officers and councillors (Chief Executive's report to Transport and Environment Committee, 16 Nov 2023). According to the Council, training on this Protocol is being delivered to senior officers across the Council, covering the duty to provide accurate reports to councillors.
City of Edinburgh Council
(Primary)
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Civil Sanctions for Misleading Reports
Recommendation
Where a company, including an ALEO, knowingly submits a report or other information to local authority officials that is misleading by reason of the inclusion of false statements or the omission of relevant facts, or where such officials knowingly submit …
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Published evidence summary
According to the Transport Secretary Statement, 2 Nov 2023, the Scottish Government stated on 2 November 2023 that it was giving careful consideration to recommendations regarding civil damages provisions for misleading evidence, noting that existing remedies may already exist under delictual liability and fraud law. According to the Scottish Government's independent evidence, 2 Nov 2023, as of February 2026, no legislative action has been taken to introduce new civil sanctions as suggested by the recommendation.
Scottish Government
(Primary)
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Criminal Sanctions for Misleading Information
Recommendation
In addition to civil liability from any sanction introduced in accordance with Recommendation 22, Scottish Ministers should consider whether there is need for a statutory criminal offence involving strict liability once it is established that information or reports were misleading …
Read more
Published evidence summary
According to the Transport Secretary Statement on 2 November 2023, the Scottish Government stated that it was giving careful consideration to recommendations regarding civil damages provisions and criminal statutory offences for misleading evidence, noting that existing remedies under delictual liability and fraud law may already apply. No further specific published evidence of action, such as new legislation or policy development, has been identified since this statement.
Scottish Government
(Primary)
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Duty of Disclosure Legislation
Recommendation
Scottish Ministers should consider the need for legislation to impose a similar duty of disclosure to that owed by policyholders to their insurers upon a company, its directors, employees or consultants and upon a local authority and its officials towards …
Read more
Published evidence summary
According to the Scottish Government's statement on 2 November 2023, it was giving careful consideration to recommendations regarding provisions for misleading evidence, including the need for legislation to impose a duty of disclosure similar to that owed by policyholders to insurers. No further specific published evidence of action, such as new legislation or policy development, has been identified since this statement.
Scottish Government
(Primary)
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