Edinburgh Trams Project Cash Witheld

Edinburgh Trams Project Cash Witheld

PRESS ASSOCIATION -- The Scottish Government is refusing to extend payments to the beleaguered Edinburgh trams project, leaving a further £72 million shortfall.

Government agency Transport Scotland, which had already stretched its deadline passed March, said the flow of cash will stop on Wednesday.

It follows the controversial vote, pushed through by Labour and Conservative councillors, to stop the tramline at Haymarket instead of connecting the airport and the city centre.

Finance Secretary John Swinney said: "The Government had the obligation to give the tram project a further £72 million. Ministers have made clear to the City of Edinburgh Council today that in light of the council's decision last Thursday, which takes the project far, far away from the original concept that ministers committed funding towards, that we're not prepared to make that money available.

"It's time for the council to think long and hard about where it's going with this project. What's clear is the Government will not be funding a project that just goes to Haymarket."

He said it is now down to the council to come forward with new proposals, which will be considered on their merits.

A special meeting to discuss Edinburgh's tram scheme will be held later this week.

Councillors voted against plans to borrow an extra £231 million to take the tramline into St Andrew Square in the city centre, and instead backed a Labour amendment to run the line from the airport to Haymarket in the west end.

The decision went against advice by Edinburgh City Council officials that a tramline from the airport to Haymarket could be loss making.

It has since emerged the shortened route could cost up to £30 million more than the official £700 million price tag.

Close

What's Hot