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 | Tracked 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
- In November 2023, the Scottish Government stated that guidance on efficient public inquiry establishment was "already in development" and had been shared with recent inquiries (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", providing guidance on whether an inquiry should be established, covering statutory and non-statutory options, independence requirements, cost and timing considerations, powers available, interaction with parallel investigations, ECHR obligations, and alternative mechanisms (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", providing guidance on whether an inquiry should be established, covering statutory and non-statutory options, independence requirements, cost and timing considerations, powers available, interaction with parallel investigations, ECHR obligations, and alternative mechanisms (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
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
- In November 2023, the Scottish Government stated that guidance similar to that suggested was already in development (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which addresses independence requirements for inquiries, including considerations around the relationship between the sponsoring body and the subject matter under investigation (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which addresses independence requirements for inquiries, including considerations around the relationship between the sponsoring body and the subject matter under investigation (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
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
- In November 2023, the Scottish Government stated that guidance similar to that suggested was already in development (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which covers staffing and resourcing considerations for inquiries (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- No published guidance specifically addressing circumstances for civil servant transfers, which positions may use agency staff, and suitability of temporary contracts has been identified separately from the general inquiry guidance to March 2026.
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which covers staffing and resourcing considerations for inquiries (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- No published guidance specifically addressing circumstances for civil servant transfers, which positions may use agency staff, and suitability of temporary contracts has been identified separately from the general inquiry guidance to March 2026.
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
- In November 2023, the Scottish Government stated that guidance similar to that suggested was already in development (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which addresses cost considerations for inquiries (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- No published guidance specifically requiring disclosure of net costs to the public purse (excluding pre-existing staffing and accommodation costs) alongside total departmental account costs has been identified to March 2026.
- In November 2025, the Scottish Government published "Public inquiries: guidance for Ministers and officials", which addresses cost considerations for inquiries (Public inquiries: guidance for Ministers and officials, Scottish Government, 24 November 2025).
- No published guidance specifically requiring disclosure of net costs to the public purse (excluding pre-existing staffing and accommodation costs) alongside total departmental account costs has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published updated guidance specifically requiring revised Business Cases where pre-contract assumptions on design, approvals, or utility diversions have not been met has been identified to March 2026.
- No published updated guidance specifically requiring revised Business Cases where pre-contract assumptions on design, approvals, or utility diversions have not been met has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- Scottish Government Green Book supplementary guidance requires consideration of optimism bias in Business Cases, but no published update specifically responding to this recommendation has been identified to March 2026.
- Scottish Government Green Book supplementary guidance requires consideration of optimism bias in Business Cases, but no published update specifically responding to this recommendation has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published requirement for mandatory external peer review of Business Case risk assessments for large-scale transportation infrastructure projects has been identified to March 2026.
- No published requirement for mandatory external peer review of Business Case risk assessments for large-scale transportation infrastructure projects has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it already operates in line with best practices but would consider updating guidance (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published update to optimism bias guidance incorporating light rail project data or reflecting current empirical evidence has been identified to March 2026.
- No published update to optimism bias guidance incorporating light rail project data or reflecting current empirical evidence has been identified to March 2026.
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.
Read more
Published evidence summary
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published updated guidance specifically addressing probabilistic forecasting, early warning detection, and quality-focused evidence for major public sector contracts has been identified to March 2026.
- No published updated guidance specifically addressing probabilistic forecasting, early warning detection, and quality-focused evidence for major public sector contracts has been identified to March 2026.
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
- In November 2023, the Scottish Government stated that "effective collaboration sits at the heart of this Government" and cited the Verity House Agreement as a testament to its collaborative approach with local government (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published evidence that a specific joint working group with COSLA representatives has been established to leverage Transport Scotland's project management experience for light rail projects has been identified to March 2026.
- No published evidence that a specific joint working group with COSLA representatives has been established to leverage Transport Scotland's project management experience for light rail projects has been identified to March 2026.
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
- In November 2023, the Scottish Government stated that while responsibility for delivery remains with councils as project leads, the Government committed to championing closer working through the Verity House Agreement (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published updated guidance specifically requiring conditional grant payments with review hold points, critical review of Business Cases, or Scottish Government involvement in project delivery for light rail has been identified to March 2026.
- No published updated guidance specifically requiring conditional grant payments with review hold points, critical review of Business Cases, or Scottish Government involvement in project delivery for light rail has been identified to March 2026.
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
- In November 2023, the Scottish Government stated that "robust and enhanced procedures regarding minute-taking and documentation management have also been embedded within the Government and the Civil Service" (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No independently published assessment of whether the enhanced documentation procedures are operating effectively in relation to publicly funded major projects has been identified to March 2026.
- No independently published assessment of whether the enhanced documentation procedures are operating effectively in relation to publicly funded major projects has been identified to March 2026.
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.
Read more
Published evidence summary
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published updated procurement guidance specifically addressing utility location uncertainties, requiring route exposure and clearance before construction, has been identified to March 2026.
- No published updated procurement guidance specifically addressing utility location uncertainties, requiring route exposure and clearance before construction, has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published updated guidance specifically addressing utility diversion risk management approaches has been identified to March 2026.
- No published updated guidance specifically addressing utility diversion risk management approaches has been identified to March 2026.
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
- In November 2023, City of Edinburgh Council Leader Cammy Day stated that the Council broadly agreed with Lord Hardie's recommendations and noted improvements had been implemented for the successful delivery of the Trams to Newhaven project (City of Edinburgh Council response, November 2023).
- In a subsequent Council committee report (16 November 2023), the Council noted that the Trams to Newhaven project had demonstrated improved procurement and project management practices (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal framework requiring appointment of experienced permanent employees for light rail project management has been identified to March 2026.
- In a subsequent Council committee report (16 November 2023), the Council noted that the Trams to Newhaven project had demonstrated improved procurement and project management practices (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal framework requiring appointment of experienced permanent employees for light rail project management has been identified to March 2026.
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.
Read more
Published evidence summary
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations, noting improvements had been implemented for Trams to Newhaven (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) acknowledged that the original tram project lacked a single point of contact to coordinate design responses, and that this had been addressed in the Newhaven project (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal guidance requiring continuous engagement between promoters, owners, and planning authorities on design criteria for future light rail projects has been identified to March 2026.
- The Council committee report (16 November 2023) acknowledged that the original tram project lacked a single point of contact to coordinate design responses, and that this had been addressed in the Newhaven project (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal guidance requiring continuous engagement between promoters, owners, and planning authorities on design criteria for future light rail projects has been identified to March 2026.
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 …
Read more
Published evidence summary
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations, noting that governance improvements had been implemented for Trams to Newhaven (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) acknowledged difficulties in the governance of the first phase due to complexity in the governance structure and lack of understanding by individuals of their roles and responsibilities (City of Edinburgh Council Committee Report, 16 November 2023).
- No published updated governance framework specifically prohibiting the chairman of a procurement company from also serving as its chief executive has been identified to March 2026.
- The Council committee report (16 November 2023) acknowledged difficulties in the governance of the first phase due to complexity in the governance structure and lack of understanding by individuals of their roles and responsibilities (City of Edinburgh Council Committee Report, 16 November 2023).
- No published updated governance framework specifically prohibiting the chairman of a procurement company from also serving as its chief executive has been identified to March 2026.
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
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations, noting improvements in communication and reporting had been implemented for Trams to Newhaven (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) stated that the Council agreed to support any future readiness review or audit to ensure clear understanding of progress and reporting (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal framework for mandatory progress reporting and escalation procedures in major publicly funded projects has been identified to March 2026.
- The Council committee report (16 November 2023) stated that the Council agreed to support any future readiness review or audit to ensure clear understanding of progress and reporting (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal framework for mandatory progress reporting and escalation procedures in major publicly funded projects has been identified to March 2026.
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
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations, noting that co-location of representatives had been successfully adopted on the Trams to Newhaven project (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) acknowledged that co-location had proven advantageous on the Newhaven project (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal requirement for collaborative co-location in future major infrastructure projects has been identified to March 2026.
- The Council committee report (16 November 2023) acknowledged that co-location had proven advantageous on the Newhaven project (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal requirement for collaborative co-location in future major infrastructure projects has been identified to March 2026.
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
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) noted that scrutiny of arm's-length external organisations (ALEOs) had significantly improved since the original tram project, with reviews in 2012 and 2016 strengthening governance arrangements and the Council's relationship with its ALEOs (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal prohibition on ALEO directors or employees submitting public interest claims without the approval of senior officers of the parent local authority has been identified to March 2026.
- The Council committee report (16 November 2023) noted that scrutiny of arm's-length external organisations (ALEOs) had significantly improved since the original tram project, with reviews in 2012 and 2016 strengthening governance arrangements and the Council's relationship with its ALEOs (City of Edinburgh Council Committee Report, 16 November 2023).
- No published formal prohibition on ALEO directors or employees submitting public interest claims without the approval of senior officers of the parent local authority has been identified to March 2026.
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
- In November 2023, the Council stated it broadly agreed with Lord Hardie's recommendations (City of Edinburgh Council response, November 2023).
- The Council committee report (16 November 2023) noted that the Council's Member/Officer Protocol highlights the distinction in roles between officials and councillors (City of Edinburgh Council Committee Report, 16 November 2023).
- No published updated guidance specifically requiring accurate reporting to councillors on major project progress has been identified to March 2026.
- The Council committee report (16 November 2023) noted that the Council's Member/Officer Protocol highlights the distinction in roles between officials and councillors (City of Edinburgh Council Committee Report, 16 November 2023).
- No published updated guidance specifically requiring accurate reporting to councillors on major project progress has been identified to March 2026.
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
- In November 2023, the Scottish Government stated it was "giving careful consideration" to the recommendations about civil damages provisions for misleading evidence, noting that existing remedies may already exist under delictual law (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published decision on whether to introduce new civil liability provisions for knowingly submitting misleading reports or information has been identified to March 2026.
- No published decision on whether to introduce new civil liability provisions for knowingly submitting misleading reports or information has been identified to March 2026.
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 …
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Published evidence summary
- In November 2023, the Scottish Government stated it was "giving careful consideration" to the recommendations about criminal statutory offences for misleading evidence, noting that existing remedies may already exist (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published decision on whether to introduce a statutory criminal offence of strict liability for submitting misleading information or reports has been identified to March 2026.
- No published decision on whether to introduce a statutory criminal offence of strict liability for submitting misleading information or reports has been identified to March 2026.
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 …
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Published evidence summary
- In November 2023, the Scottish Government stated it was "giving careful consideration" to the recommendations about provisions for misleading evidence (Transport Secretary Statement on Edinburgh Tram Inquiry Report, Scottish Government, 2 November 2023).
- No published decision on whether to introduce legislation imposing a duty of disclosure upon companies, directors, and local authority officials towards audit and review bodies has been identified to March 2026.
- No published decision on whether to introduce legislation imposing a duty of disclosure upon companies, directors, and local authority officials towards audit and review bodies has been identified to March 2026.
Scottish Government
(Primary)
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