AN EXTENSION to Edinburgh's tram network that is under threat is to be given a four-month stay of execution to try to fill a £50 million funding black hole.
Transport leaders are set to put off a decision over axing the route, which will serve most of the capital's waterfront regeneration area, to allow time for a last-ditch funding package to be put together.
Work will then begin within months on the
Haymarket-Granton "spur" if the Scottish Government agrees to allow the council to borrow against business tax revenue expected to be generated on the waterfront.
The Scotsman can also reveal that the council is to launch another bid for a further extension of the tram scheme, which would link the city centre with several Edinburgh University buildings and the Edinburgh Royal Infirmary at Little France.
Transport leaders have unveiled plans to commission a detailed feasibility study and take the first steps to seek parliamentary approval for the third tram route, which could take up to two years.
Meanwhile, retailers are facing the prospect of Princes Street being closed to all traffic throughout next year's Edinburgh International Festival – despite such a prospect previously having been ruled out.
The option, which businesses are to be consulted on over the next few weeks, is being considered to ensure major work on Princes Street is completed well before Christmas next year.
The street is due to be fully closed by the end of February at the latest. Buses, cars and taxis will be diverted mainly onto George Street. Both Queen Street and Heriot Row will be put on standby to accommodate diverted traffic.
Councillors will be told next week that, despite the economic downturn, there is still a strong argument for the Haymarket-Granton tram route, to act as a "catalyst" for the regeneration of the waterfront.
Officials have warned there appears "little prospect" of securing additional backing from the Scottish Government for the route, line 1B, on top of the £500 million already committed.
They are also warning that delays to construction work on the main line between Edinburgh Airport and Ocean Terminal mean it has to take priority over the 1B extension.
The report also states the strength of support from the business community for a link to the south-east of the city, as well as from both Edinburgh University and NHS Lothian.
Jenny Dawe, the leader of Edinburgh Council, said last night: "Our ambition is for residents to enjoy a complete tram system that takes them quickly to jobs, leisure facilities, home and shops across the city.
"We will keep pressing for the line from Haymarket to Granton, which would be a catalyst for further regeneration, and the much-wanted tram serving the south-east of the city."
