Public Inquiry
Edinburgh Tram Inquiry
Status: Completed
Chair: Lord Hardie
Established: Oct 2014
Report: Sep 2023
Commissioned by: Scottish Government
Public inquiry into why the Edinburgh Trams project was delivered late, over budget, and with a reduced scope. The project cost £776m against an original estimate of £375m and took 5 years longer than planned.
Response breakdown
Data last updated: 16 Nov 2023 · Source · Data verified: 31 Jan 2026 (Claude)
Evidence & impact
The Edinburgh Tram Inquiry, chaired by Lord Hardie, examined the planning and construction of Edinburgh's tram system, which experienced significant cost overruns and delays. The inquiry published 24 recommendations in August 2023 focusing on project governance, management practices, and legal reforms.
The Scottish Government accepted 14 recommendations (58%), accepted 7 in principle (29%), and placed 3 under consideration (12%). In its November 2023 response, the Government stated that enhanced procedures for documentation management had been embedded within government and that guidance for establishing inquiries was already in development. The Government noted its commitment to collaborative working through the Verity House agreement, whilst maintaining that responsibility for project delivery remains with councils.
City of Edinburgh Council's Chief Executive reported to the Transport and Environment Committee in November 2023, recommending acceptance of several recommendations. Council Leader Cammy Day acknowledged that "serious mistakes were made in the construction of the original tram line" and noted that processes implemented since the original project had helped deliver the successful Trams to Newhaven extension.
The Council reported that scrutiny of ALEOs had "significantly improved" following reviews in 2012 and 2016, resulting in formalised observer roles and increased committee scrutiny. Training on the Member/Officer Protocol was being delivered to senior officers to clarify the distinction between officer and councillor roles.
Three recommendations regarding civil damages provisions and criminal offences for misleading evidence to inquiries remain under consideration by the Scottish Government, which noted that existing remedies may already exist under delictual liability and fraud law.
Whilst both the Scottish Government and City of Edinburgh Council provided initial responses accepting most recommendations, published evidence of specific implementation actions remains limited for many recommendations, particularly those relating to project management expertise requirements, governance structures, and stakeholder co-location practices.
The Scottish Government accepted 14 recommendations (58%), accepted 7 in principle (29%), and placed 3 under consideration (12%). In its November 2023 response, the Government stated that enhanced procedures for documentation management had been embedded within government and that guidance for establishing inquiries was already in development. The Government noted its commitment to collaborative working through the Verity House agreement, whilst maintaining that responsibility for project delivery remains with councils.
City of Edinburgh Council's Chief Executive reported to the Transport and Environment Committee in November 2023, recommending acceptance of several recommendations. Council Leader Cammy Day acknowledged that "serious mistakes were made in the construction of the original tram line" and noted that processes implemented since the original project had helped deliver the successful Trams to Newhaven extension.
The Council reported that scrutiny of ALEOs had "significantly improved" following reviews in 2012 and 2016, resulting in formalised observer roles and increased committee scrutiny. Training on the Member/Officer Protocol was being delivered to senior officers to clarify the distinction between officer and councillor roles.
Three recommendations regarding civil damages provisions and criminal offences for misleading evidence to inquiries remain under consideration by the Scottish Government, which noted that existing remedies may already exist under delictual liability and fraud law.
Whilst both the Scottish Government and City of Edinburgh Council provided initial responses accepting most recommendations, published evidence of specific implementation actions remains limited for many recommendations, particularly those relating to project management expertise requirements, governance structures, and stakeholder co-location practices.
Key facts
Duration: 8 years, 10 months
Total cost: £13.2m
Witnesses: 100
Hearing days: 160
Core participants: 7
Documents disclosed: 6,000,000
Report pages: 961
Reports & milestones
Reports
Timeline
05 Jun 2014
Inquiry Announced
Scottish Ministers established an inquiry into the Edinburgh Tram Project.
· Source
03 Jul 2014
Chair Appointed
Lord Hardie appointed as Chair.
08 Sep 2014
Terms of Referenc…
Inquiry to examine why project was delayed and over budget.
09 Mar 2017
Hearings Begin
Evidence hearings commenced.
31 Jan 2024
Government Respon…
Scottish Government response to recommendations.
Recommendations
| Code | Recommendation | Addressed to | Response | |
|---|---|---|---|---|
| ETI-5 |
Where the Business Case for any future light rail project is based upon an assumption that, prior to the award of the …
|
Scottish Government | Accepted | View → |
| ETI-6 |
All versions of the Business Case, including any Business Case required as a result of altered assumptions, should include an assessment of …
|
Scottish Government | Accepted | View → |
| ETI-7 |
The assessment of risk at each stage mentioned in Recommendation 6 should be the subject of a peer review by external consultants …
|
Scottish Government | Accepted | View → |
| ETI-9 |
The identification and management of risk should be an integral part of the governance of all major public-sector contracts in future. In …
|
Scottish Government | Accepted | View → |
| ETI-12 |
For reasons of transparency and accountability for public expenditure, the Scottish Ministers should keep minutes of: • the nature and content of …
|
Scottish Government | Accepted | View → |
| ETI-13 |
The procurement strategy for any future light rail project should make adequate provision for the uncertainties concerning the location of utilities and …
|
Scottish Government | Accepted | View → |
| ETI-14 |
Although some participants in the Inquiry criticised the use of MUDFA to divert utilities in advance of the infrastructure works and advocated …
|
Scottish Government | Accepted | View → |
| ETI-15 |
In recognition of the various difficulties likely to be experienced in the design and construction of a light rail project through a …
|
City of Edinburgh Council | Accepted | View → |
| ETI-16 |
Immediately following the appointment of the designer, and throughout the design of the project, the designer should engage with the promoter and …
|
City of Edinburgh Council | Accepted | View → |
| ETI-17 |
The governance structure for the delivery of a major project such as a light rail scheme should follow the published guidance and …
|
City of Edinburgh Council | Accepted | View → |
| ETI-18 |
As part of their investigations, representatives of OGC undertaking an independent “readiness review” of a publicly funded project and representatives of any …
|
City of Edinburgh Council | Accepted | View → |
| ETI-19 |
At all stages of the project there should be a collaborative approach to delivering it. This should include the co-location of representatives …
|
City of Edinburgh Council | Accepted | View → |
| ETI-20 |
The directors, employees and consultants of the company responsible for the procurement and delivery of the project as project managers, including an …
|
City of Edinburgh Council | Accepted | View → |
| ETI-21 |
Local authority officials should be mindful at all times of the distinction in roles between them and councillors, who are solely responsible …
|
City of Edinburgh Council | Accepted | View → |