Trams: What next? the options

Published on Wednesday 22 June 2011 16:24

Extending borrowing powers: Probably the best option for rescuing the tram project, but would need the Scottish Government's permission and may leave the council paying off the project for years to come.

Extra funding from the Scottish Government: Highly unlikely given the SNP's consistent stance against the project, but a more palatable option for the council and the business community.

Using private finance to finish the line: Likely to be even less popular with voters than borrowing huge amounts to bridge the funding gap, but may bring some certainty over when trams will start running.

Tax incremental finance scheme: May win the support of the government, which has backed such a scheme to kick-start the regeneration of the waterfront. Ministers would stump up the cash, but would get it back when the scheme starts operating.

Bringing in a private operator: An idea floated by the council last month, which could see a company offer to finish and run all or part of the tram route. The big catch is possible competition with council-run Lothian Buses.

Selling off Lothian Buses: Already ruled out as a non-starter by most councillors, due to its unpopularity with voters. Would not bridge all of the funding gap.