Backing for £145m Edinburgh tram expansion

The decision to approve the proposal in principle was described as a “first cautious step” during a meeting in the City Chambers.

It follows a council report that recommended extending the current line to Newhaven and suggested using financial dividends from the city’s profitable bus company to meet the initial costs.

Councillors voted to review that business case ahead of their next meeting in three weeks’ time.

Leith was part of the original tram route but, after the project hit problems, the tracks got no further than York Place in the city centre.

Members of Edinburgh City Council voted “in principle” 44 to 11 in favour of adding the threemile extension, which is expected to cost taxpayers around £145 million and take until 2021 to be completed.

Councillors were told the new development would act as an “economic stimulus” for the capital’s waterfront, but that they must “drive a hard bargain” with utility companies who were partly blamed for driving up the costs of the previous trams project.

The line finally opened to passengers in May 2014, five years behind schedule.

Lord Hardie will now oversee an inquiry into why the controversial development was delivered late and £375m over budget.

Council leader Andrew Burns said: “I am pleased we have been able to find a way forward for the project, which would deliver a range of key benefits in terms of economic growth, greater accessibility and the environment for Leith and the city as a whole.

“It is now our intention to ensure complete clarity before taking the next step, taking into account the needs of the city’s taxpayers.”

However, Conservative councillor Cameron Rose said the extension would prove “ruinously expensive”, take too long to complete and accused the ruling Labour-SNP coalition of “putting the cart before the horse” since Lord Hardie’s inquiry had not even begun.

He added: “It is incredible that after the debacle and shambles of the previous trams project, this council wants to press ahead with another before we even have the results of the inquiry.”

A nine-month period of site investigation, procurement and other preparatory work will be undertaken, after which a report will be submitted to the council recommending how best to proceed with the development.

The previous trams project was dogged with contractual disputes and controversy which saw construction temporarily grind to a halt.

Plans to use cash from taxpayer-owned Lothian Buses to part-fund the Newhaven extension have been put on hold until the council is satisfied there will be no adverse impact on bus modernisation or fares.

The council wants to use at least £25m of profits from the bus company, whose parent company Transport for Edinburgh also runs the tram network.