New figures published in the latest accounts for Edinburgh Trams have shown that the system recorded a £10.3 million operating loss in 2023. This is the sixth year in a row that a loss has been recorded, but most of the losses can be attributed to the annual asset fee which Edinburgh Trams have to pay to the City of Edinburgh Council.
In total since opening 10 years ago, the net loss registered by Edinburgh Trams is now £54.5 million. Just two years have seen a profit with £250,000 in 2016 and £1.6 million in 2017. It was 2018 that the annual asset fee started to be paid, with this said to be because of the additional borrowing costs connected to the cost overrun on the original line.
Obviously the news of this latest loss – in a year which has been a success for Edinburgh Trams with significant increases in passenger numbers including the busiest ever day – has been met with anger from opposition politicians in the region (although the Scottish Government have made no comment).
Sue Webber, is a Scottish Conservative MSP for the Lothians: “People living and working in Edinburgh will find it astonishing that the capital’s trams are still losing millions of pounds. Taxpayers already forked out over a billion on the construction of the trams. So serious questions must be asked about why it is still operating at such a loss, especially when we are constantly told by the city’s Labour-run council that they are such a huge success.”
Cllr Stephen Jenkinson, Edinburgh Council’s Transport and Environment Convener, said: “Having just enjoyed another record-breaking summer, our award-winning tram service continues to be hugely popular with the thousands of residents and visitors who use it each day, offering a consistently reliable service with some of the cheapest fares in the country.
“The successful completion of the line to Newhaven last year has brought huge economic, social and environmental benefits to Leith, north Edinburgh, and the city as a whole – demonstrating the value that trams bring to the city, far beyond the cost or profit.”
Amongst the various figures released its also been said that passenger numbers travelling to Edinburgh Airport increased by 40% in 2023.
And this is everything wrong with public transport – it shouldn’t matter if it makes a profit or loss. It should all be subsidised, it should be a public service not a business.
Totally agree John, I would go further to suggest that all “Public Transport” should be free to the user, and I am most certainly not a Socialist!!!