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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: 23 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 01 Aug 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 (7)

ETI-1
Accepted in Part
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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ETI-2
Accepted in Part
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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ETI-3
Accepted in Part
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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ETI-4
Accepted in Part
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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ETI-8
Accepted in Part
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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ETI-10
Accepted in Part
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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ETI-11
Accepted in Part
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 … Read more
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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