Exclusive:Scottish Government indicates it will not fund Edinburgh tram expansion to Granton and Royal Infirmary

Council leaders are seeking views on new routes to Granton in the north and the Royal Infirmary and BioQuarter in the south. But documents show Transport Scotland does not consider financial support “affordable in the current fiscal climate”.

Stephen Jenkinson, Edinburgh Council’s transport and environment convener, was asked about funding during a briefing for journalists on Monday.

“We can answer the question as to how much, but where the money comes from is probably going to be the next stage,” he said.

A £207 million extension from Picardy Place to Newhaven was opened in 2023, with the trams previously only running on a route between Edinburgh Airport and York Place, which opened in 2014 after years of delays and spiralling costs.

The latest proposals are more ambitious and would cost between £2bn and £2.9bn, depending on the final options selected.

Council bosses have outlined two possible routes for the planned section between Granton and the city centre, with one going via Orchard Brae and the other following the Roseburn Path.

The former would involve running the trams over the Dean Bridge, which would present a major engineering challenge. It would cost an estimated £650m to £850m to complete.

The latter is substantially cheaper, at an estimated £350m to £480m, but has been opposed by local campaigners because the Roseburn Path is now a popular walking and cycle route.

Documents released under Freedom of Information (FOI) laws show a meeting was held between Paul Lawrence, the chief executive of Edinburgh Council, and Alison Irvine, the chief executive of Transport Scotland, at a Costa coffee in the city in January.

A briefing note written by Ms Irvine’s officials said it was “not clear whether extending tram is a regional priority shared by surrounding local authorities and, of course, SEStran [the South East of Scotland Regional Transport Partnership]”.

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The note said Edinburgh Council considered its proposals to be at the forefront of a recommendation made within the latest Strategic Transport Projects Review (STPR2), which sets out the Scottish Government’s transport investment priorities.

“While tram could constitute part of this, it does not in itself address the problems and opportunities this recommendation is designed around,” the briefing said. “There is no evidence to suggest the Granton to BioQuarter tram proposal is a regional scheme.

“Additionally, such support from the Scottish Government is not affordable in the current fiscal climate, nor in line with the recent recommendations of the tram inquiry.”

A letter sent by Transport Secretary Fiona Hyslop to the council last year also made similar points.

“The Scottish Government is facing significant pressures on its capital budget, with an expected real terms reduction to our UK capital funding of nearly 9 per cent over five years,” she said.

“This equates to a cumulative loss of over £1.3bn between 2023/24 and 2027/28, which will significantly affect our ability to maintain investment.

“Therefore, I suggest CEC [City of Edinburgh Council] explore alternative funding avenues for tram within an overall mass transit scheme, noting that proposals relating to the STPR2 recommendations for mass transit schemes in both Aberdeen and Glasgow are being progressed through the respective City Region Deals.”

During a meeting held between Transport Scotland and the council in March this year, the former said it was “content to keep engaging with CEC regarding the proposed extensions to Edinburgh tram within the context of STPR2 Recommendation 12”.

However, minutes of the meeting added: “TS [Transport Scotland] stated they do not view tram in Edinburgh in itself to comprise STPR2 Recommendation 12 on ESES MT [Edinburgh and South East Scotland mass transit], rather it is only one part.

“TS do not yet have a view on whether this would be the priority part fund as there is currently no business case/sufficient evidence to support this.”

The documents were released to Euan Baxter, of the Save the Roseburn Path campaign.

He said: “People in north Edinburgh don’t want the tram there [the Roseburn Path]. They are making that clear. We are encouraging as many people as possible to fill out the consultation on that basis.”

Mr Baxter added: “I’m surprised they have come forward with something when locals have been clear they don’t want to give up this green space. But actually, also, it isn’t fundable, because it doesn’t promote interregional travel.”

Edinburgh Council has said it is working closely with local authorities in Midlothian and East Lothian regarding “potential future mass transit connections” beyond the Royal Infirmary.

This includes exploring a “tram-train” - a light rail vehicle than can operate on tram and rail tracks - concept with Network Rail on the old Edinburgh South Suburban Railway.

Other potential options include connections with Musselburgh railway station and Queen Margaret University in East Lothian and to Shawfair, with interchange opportunities into Midlothian and the Scottish Borders.

Mr Jenkinson said: “We’ve been clear throughout that we would explore a range of options to fund the proposed tram extension – and in developing the strategic business case, we’re strengthening our ability to secure this. It’s worth highlighting that any Scottish Government funding wouldn’t be required until well into the next Parliament, so the current funding situation doesn’t hinder our plans.

"We’re also clear that our proposals for the north-south route are part of Transport Scotland's STPR2 recommendations – and I would strongly refute the suggestion that this isn’t a regional scheme. Connectivity between Edinburgh, our neighbouring local authorities and the wider region is key to our plans for the tram and wider transport network.”

He added: “We’ll continue to engage with the Scottish Government and encourage them to support us in one of the most ambitious and important transport investments that the country could see in the coming years.”