Edinburgh's tram extension: Tories warn of possible delay in completion

Tories have warned a slippage in the construction of Edinburgh's tram extension could lead to a delay in the promised opening of the new line in spring next year.

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Council chiefs have insisted the £207 million project taking the tramline from York Place down Leith Walk and on to Newhaven is on track to be completed on time and within budget.

But Conservative finance spokesman Andrew Johnston highlighted a projected underspend of £2.5m on the project in 2021/22.

Artist's impression of a tram on Leith Walk.

And he seized on a slip of the tongue at Thursday's finance committee when a senior official said the extension was due to open in "July next year".

Head of finance Hugh Dunn assured the committee the £2.5m slippage was not significant in a project of this scale.

He said: "You might get some slippage between years but the programme as a whole is still planned to be completed on time and on budget."

Later, when he was answering questions on forecast passenger numbers and fare income – both expected to be significantly down following the pandemic – Mr Dunn said: "We've looked at where we might be when the tram opens in July next year.”

Tram tracks on Leith Walk. Picture: Andy O'Brien

Councillor Johnson picked him up on his mention of July and said he understood the new line was meant to be ready in the spring.

Mr Dunn said: "I meant to say June 2023 is when it's planned for. If I did say July, apologies for that."

But afterwards Cllr Johnson said: "Already we know they are working towards the very last part of spring, they're saying June. When I think of spring I think March and April. So I think it's something we need to keep a very watchful eye on.

“We need to see regular reports that this is on track. We know they have underspent the budget with slippage of £2.5m which they're having to spend later in the year, so it does seem they're hinting at construction delays.”

A report to the finance committee warned that while the tram extension was originally to be financed from fare income, reduced passenger number forecasts now meant the council may have to find £7m in 2023/24 and £9.25m a year thereafter to subsidise the line.

Mr Dunn said the figures were in line with one of the scenarios outlined in a revision of the business case presented to councillors in November 2020, based on a 20 per cent reduction in passengers and fares.

He said before the latest Covid variant came along passenger numbers were picking up “quite nicely”, but over Christmas they had gone back down again.

“We will keep it under review. It is a moving feast and a lot of it will depend on whether working from home continues and also on airport passenger numbers.”

Transport convener Lesley Macinnes said: “We’re confident that the Trams to Newhaven project remains on track for completion by spring 2023 and within the £207.3m budget. This is despite the challenges associated with Covid, including a 13-week site shutdown in 2020 and the well-publicised industry shortage of materials and skilled labour. The current position is testament to the project team’s hard work and prudent financial management.

“The forecast completion date is inclusive of an element of risk and since the emergence of the pandemic, we’ve carried out regular reviews of the project’s business case to ensure pressures are taken into account as we progress with the scheme.”

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