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Edinburgh Tram Inquiry

Completed
Chair Lord Hardie Judge / Judiciary
Established 01 Oct 2014
Final Report 12 Sep 2023
Commissioned by Scottish Government

Public 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.

Evidence & Impact
The Edinburgh Tram Inquiry, chaired by Lord Hardie, examined the troubled delivery of Edinburgh's tram project, which experienced significant delays, cost overruns, and contractual disputes. The inquiry was established in 2015 and reported in August 2023, making 24 recommendations aimed at improving the governance and delivery of major infrastructure projects.

The Scottish Government and City of Edinburgh Council responded to the recommendations in November 2023. The Scottish Government accepted 14 recommendations (58%) and accepted a further 7 in principle (29%), while considering 3 recommendations (12%) relating to civil sanctions and criminal offences for misleading evidence.

The Scottish Government's response frequently stated that it 'already operates in line with best practices for governance and light rail delivery' for several recommendations. For recommendations accepted in principle, the Government indicated that similar guidance was 'already in development' but provided limited specifics. The Government committed to considering updates to optimism bias guidance and noted that existing legal remedies might address concerns about misleading evidence.

The City of Edinburgh Council acknowledged the inquiry's findings about insufficient experience during the original tram project. Council Leader Cammy Day apologised for mistakes made and noted that improvements had been implemented for the successful Trams to Newhaven project. The Council's Chief Executive recommended adoption of most recommendations directed at the Council.

Published evidence of progress since the November 2023 responses remains limited. The Scottish Government updated general guidance on establishing public inquiries in November 2025, though this does not address all specific recommendations about inquiry establishment. The Council reported that improvements in ALEO scrutiny and documentation procedures had been embedded, citing reforms from 2012 and 2016.

However, no published evidence has been identified for many specific actions recommended by the inquiry, including establishment of joint working groups, implementation of conditional grant frameworks, production of new design guidance, or updates to optimism bias guidance for light rail projects. The pattern suggests acceptance of recommendations in principle but limited published evidence of specific implementation measures three years after the report's publication.
Reforms Attributed to This Inquiry
- The Scottish Government updated its general guidance for Ministers and officials on establishing public inquiries (gov.scot, 24 November 2025)
- The City of Edinburgh Council reported that robust and enhanced procedures for minute-taking and documentation management have been embedded within government and civil service operations
- The Council reported significant improvements in the scrutiny of Arm's Length External Organisations (ALEOs) following reports in 2012 and 2016, including formalisation of the Council's observer role, increased scrutiny by Council committees, and regular reporting
- The Council established dual reporting of ALEOs to an executive committee and to the Governance, Risk and Best Value Committee
Unfinished Business
- No published evidence of a dedicated unit within the Scottish Courts and Tribunals Service or guidance on cost-effective inquiry methods (ETI-1)
- No evidence of establishment of a joint working group with COSLA representatives to leverage Transport Scotland's project management experience (ETI-10)
- No evidence of implementation of conditional grant payments or requirements for local authority compliance with Transport Scotland guidance (ETI-11)
- No specific new policy or guidance on utility diversion risk management (ETI-14)
- No evidence of new hiring policies ensuring demonstrable experience through qualified permanent employees (ETI-15)
- No specific new design guidance document produced by the Council (ETI-16)
- No evidence of new communication protocols or escalation procedures (ETI-18)
- No published policy prohibiting appointment of involved departments as inquiry sponsors (ETI-2)
- No legislative action on civil sanctions for misleading reports (ETI-22)
- No published guidance on civil servant transfers or use of agency staff (ETI-3)
- No published guidance on reporting public inquiry costs (ETI-4)
- No updated guidance incorporating optimism bias for light rail projects (ETI-6, ETI-7, ETI-8)
Generated 18 Mar 2026 using claude-opus-4. Assessment is indicative, not authoritative.
8 years, 10 months Duration
£13.2m Total Cost
100 Witnesses
160 Hearing Days
7 Core Participants
6,000,000 Documents
961 Report Pages
Inquiry Website Terms of Reference
Government Response
Accepted 14
Accepted in Part 7
Under Review 3
Total Recommendations 24
Data last updated: 16 Nov 2023 · Source
Data verified: 25 Mar 2026 (import)
How to read this

Government Response tracks what the government said it would do (accepted, rejected, etc.).

Full methodology

Title Volume Publication Date Recs Links
Edinburgh Tram Inquiry Report Final Report 12 Sep 2023 24
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.

12 Sep 2023
Final Report Published

Report published with 24 recommendations.

Source
31 Jan 2024
Government Response

Scottish Government response to recommendations.

Clear

Recommendations (14)

ETI-5
Accepted
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
The Scottish Government accepted this recommendation on 2023-11-02, stating that it already operates in line with best practices for governance and light rail delivery (Transport Secretary Statement, 2 November 2023). This indicates a claim of existing compliance rather than a new action taken in response to the recommendation. No specific new policy or guidance document formalising this practice has been identified.
Scottish Government (Primary)
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ETI-6
Accepted
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
The Scottish Government stated in its 2 November 2023 response to the Inquiry that it already operates in line with best practices for governance and light rail delivery, and therefore considered this recommendation completed. However, no specific published guidance or policy document detailing the inclusion of risk assessments accounting for optimism bias in business cases for large-scale projects has been identified in the provided official sources.
Scottish Government (Primary)
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ETI-7
Accepted
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
The Scottish Government stated in its 2 November 2023 response that it already operates in line with best practices for governance and light rail delivery, and considered this recommendation completed. However, no specific published policy or guidance requiring external peer review of business case risk assessments by experienced consultants for large-scale transportation infrastructure projects has been identified in the provided official sources.
Scottish Government (Primary)
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ETI-9
Accepted
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
The Scottish Government stated in its 2 November 2023 response that it already operates in line with best practices for governance and light rail delivery, and considered this recommendation completed. However, no specific published guidance or policy detailing the integration of probabilistic forecasts, critical review of mitigation claims, constant governance challenge, early warning detection, and quality-focused evidence in risk management for major public-sector contracts has been identified in the provided official sources.
Scottish Government (Primary)
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ETI-12
Accepted
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. Read more
Published evidence summary
The Scottish Government accepted this recommendation, stating that 'robust and enhanced procedures regarding minute-taking and documentation management have also been embedded within the Government and the Civil Service.' While this indicates action, no specific, publicly available policy documents or updated guidance detailing these enhanced procedures for minute-taking and documentation management have been identified since the inquiry report.
Scottish Government (Primary)
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ETI-13
Accepted
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
The Scottish Government accepted this recommendation, stating that it 'already operates in line with best practices for governance and light rail delivery.' This indicates a reliance on existing practices rather than new actions. No specific published evidence of new procurement strategies or updated guidance addressing utility location uncertainties, route exposure, or specifying elapsed time between clearance and commencement for light rail projects has been identified since the inquiry report.
Scottish Government (Primary)
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ETI-14
Accepted
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
The Scottish Government accepted this recommendation, stating that it 'already operates in line with best practices for governance and light rail delivery.' This suggests that existing practices are considered sufficient. No specific published evidence of new or updated guidance requiring promoters to demonstrate adequate risk management proposals for utility diversion, without prescriptive requirements for specific methods, has been identified since the inquiry report.
Scottish Government (Primary)
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ETI-15
Accepted
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
The City of Edinburgh Council formally accepted this recommendation in a Chief Executive's report on 16 November 2023, stating that demonstrable experience should be secured for project management in light rail delivery. The Council Leader also noted on 2 November 2023 that improvements were already implemented for the Trams to Newhaven project. However, no specific new policy or process document published by the Council since the inquiry report details the formal adoption or enforcement of this recommendation for future projects.
City of Edinburgh Council (Primary)
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ETI-16
Accepted
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
The City of Edinburgh Council formally accepted this recommendation in a Chief Executive's report on 16 November 2023, agreeing to adopt the recommendation to produce detailed design guidance and collaborate on design issues. The Council Leader also stated on 2 November 2023 that improvements were already implemented for the Trams to Newhaven project. However, no specific new detailed design guidance or formalised engagement process document published by the Council since the inquiry report has been identified.
City of Edinburgh Council (Primary)
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ETI-17
Accepted
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
The City of Edinburgh Council formally accepted this recommendation in a Chief Executive's report on 16 November 2023, agreeing that it should ensure future governance structures follow up-to-date guidance, clarify roles, and separate chairman and chief executive roles. The Council Leader also noted on 2 November 2023 that improvements were already implemented for the Trams to Newhaven project. However, no specific new published guidance or formalised governance structure document by the Council since the inquiry report has been identified.
City of Edinburgh Council (Primary)
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ETI-18
Accepted
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
The City of Edinburgh Council formally accepted this recommendation in a Chief Executive's report on 16 November 2023, interpreting it as being for third-party readiness reviews or audits and committing to support such reviews. The Council Leader also mentioned on 2 November 2023 that improvements were already implemented for the Trams to Newhaven project. However, no specific new policy or process document published by the Council since the inquiry report details how the Council itself has enhanced its internal communication, reporting, or escalation procedures for major projects.
City of Edinburgh Council (Primary)
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ETI-19
Accepted
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
The City of Edinburgh Council accepted this recommendation on 2023-11-16, noting that a collaborative approach, including co-location, was successfully adopted on the Trams to Newhaven project (Chief Executive's report to Transport and Environment Committee, 16 November 2023). The Council broadly agreed with the recommendations and stated that improvements were already implemented for the Trams to Newhaven project (Council news release, 2 November 2023). No specific new policy or guidance for all future projects has been identified.
City of Edinburgh Council (Primary)
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ETI-20
Accepted
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 … Read more
Published evidence summary
The City of Edinburgh Council accepted this recommendation on 2023-11-16, stating that scrutiny of Arm's Length External Organisations (ALEOs) had significantly improved since the original tram project through 2012 and 2016 reforms (Chief Executive's report to Transport and Environment Committee, 16 November 2023). A new ALEO Governance Framework was agreed in March 2025 to further improve scrutiny and formalise the importance of candour, directly responding to the Inquiry's findings (City of Edinburgh Council, 1 September 2025).
City of Edinburgh Council (Primary)
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ETI-21
Accepted
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 … Read more
Published evidence summary
The City of Edinburgh Council accepted this recommendation on 2023-11-16, highlighting its existing Member/Officer Protocol which distinguishes roles between officials and councillors (Chief Executive's report to Transport and Environment Committee, 16 November 2023). Training on this Protocol is being delivered to senior officers across the Council (Chief Executive's report to Transport and Environment Committee, 16 November 2023).
City of Edinburgh Council (Primary)
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