Transport boss Wheeler lined up to take over city finances

Lib Dem councillor Phil Wheeler is understood to be facing a challenge for his transport role by the city's finance leader Gordon Mackenzie.

The Evening News has learnt that Councillor Wheeler – who wants to remain as transport leader – has also been nominated for finance convener, meaning the pair could end up swapping jobs at the Lib Dems' AGM on Thursday.

Lib Dem insiders today described Cllr Wheeler as a "nice guy but ineffectual politician" and said the city's majority party was ripe for change.

The move follows increased criticism of the administration's handling of the tram project from political and business circles over the past year.

Claims that the party has shown no leadership over the project have accompanied a series of problems including The Mound diversions row, while the project's budget and construction programme have both slipped.

Deputy economic leader Tim Mackay has also been put forward for the finance role, though it is thought Cllr Wheeler will be handed the job as a sop if he is pushed out of his current role.

However, it is thought that the vote will be close because Cllr Wheeler still has the support of the party's old guard who were in opposition for years with him.

This is thought to include city leader Jenny Dawe, who is said to believe it is the wrong time to be making changes.

Meanwhile, the city's education leader Marilyne MacLaren today quashed rumours that she was set to face a challenge for her role as part of the expected reshuffle of the Lib Dem administration.

One party insider said: "There is a feeling that, apart from the economic situation, transport is the biggest issue in Edinburgh right now and we are not doing as well as we should be.

"The problem is that we needed someone who has enough pedigree to take it on and I think everyone has been really impressed with the way Gordon has handled the two budgets so far.

"There are some who think Phil, with his banking background, would be better suited to finance, though it will be a close vote."

Councillor Mackenzie, a board member of tram firm TIE and chairman of the council's development arm EDI, has been credited with getting the council's finances on track since 2007, while Cllr Wheeler enjoyed a 30-year career with RBS.

The one other scrap that will take place on Thursday is for the role of party chair, with current chairwoman, Cllr Elaine Morris, expected to be challenged by city centre councillor Charles Dundas.

Neither Cllrs Wheeler or Dawe returned the Evening News' calls yesterday, while Cllrs Mackay and Mackenzie declined to comment.