By 2023, a second phase of the tramline had been completed and the inquiry by Lord Hardie concluded. In recent months, City of Edinburgh Council (CEC) advised it hopes to further extend the tram lines within its city limits by 2035.

On 17 November 2025, CEC closed its public consultation on proposals to run the trams from Granton in the north of Edinburgh to the Royal Infirmary / BioQuarter in the south. With a conservative price-tag of £2-2.9 billion, this flagship infrastructure project would be integral to delivering CEC’s low carbon mobility ambitions. From a legal planning perspective, the latest plans also put Compulsory Purchase Orders (CPOs) firmly in focus.

Indeed, the Scottish Government (SG) is currently consulting on reforms to CPOs. The latest plans to extend the tram system would require a Trams Act, where land acquisition would be underpinned by any new CPO regime.

Change to the current CPO regime would be significant for major infrastructure projects in Scotland. Although some sectors, such as electricity, derive their CPO powers from more specific statute, many projects requiring compulsory purchase are still supported by a web of legislation that can be traced back to 1845!

The CPO legislation offers legal guidance. However, they also need to be fit-for-purpose to support decisions for major projects that have huge financial, planning, environmental and social consequences. Bluntly, the CPO process needs to be simplified, fairer and more transparent.

As ever, the devil is in the detail. The effectiveness of any CPO reform will depend how measures are implemented and acquiring authorities like CEC choose to exercise their legal powers. Until any CPO reforms become law (potentially 2028 at the earliest), most projects must still conform to the current regime.

The review of the current CPO regime focuses on enabling powers, early engagement, confirmation procedures, taking possession and title, and compensation. To alleviate protracted objections, it makes sense for landowners to be involved earlier in the process. Equally, it’s hoped CPO reform will ensure the governmental decision-making process to enable acquiring authorities (eg local councils) to acquire land / buildings affected by plans and the process of taking possession, can be streamlined and fast-tracked.

Unsurprisingly, compensation is a key consideration within the current consultation. CPO reform may include making advance payments to individuals / businesses whose land is being acquired, rethinking how ‘loss payments’ are calculated and even removing or limiting ‘hope value’ from compensation discussions.

‘Hope value’ is a difficult one to navigate. It would help the acquiring authority reduce project costs, due to the future development value of their land / property being excluded from the compensation. However, such approaches could result in those subject to compulsory purchase receiving less for their property than it would be worth if sold voluntarily i.e. compensation would be below market value.

While the relief from procedural complexity that will come with potential CPO reform is welcome, change is unlikely to fully eradicate the many challenges within major project planning and delivery. Public sector organisations need to collaborate effectively with private sector interests, while both wish to minimise their financial exposure and risk. CPOs can be contentious and major works like a tram extension can bring local community sensitivities and political interests alike into sharp focus.

With Holyrood required to pass a bill for any proposed CPO reforms to become law and the trams project having a delivery timescale of 2035, it will be some time before passengers hear ‘next stop, Edinburgh Royal Infirmary’.

Steven Stewart is a partner at Shoosmiths. This article first appeared in The Scotsman.