THE four largest private sector firms in Edinburgh have pledged just over £1 million between them to the cost of the city's £545m tram project, it can be revealed today.
Council chiefs need to raise £25m of their £45m share in the project through contributions linked to developments along the length of the route.
But figures obtained by the Evening News show the Capital's four largest private sector employers, the
Royal Bank of Scotland, Bank of Scotland, Standard Life and Scottish Widows, have pledged just £1.1m to the trams, with only £350,000 of that sum actually received by the council.
All the money contributed so far has come from RBS, which is responsible for funding a tram stop at Gogarburn next to its HQ.
Scottish Widows, which along with the Bank of Scotland is owned by the Lloyds Banking Group, has pledged a further £760,000.
The money was paid out by the Scottish Widows Investment Partnership as part of the Exchange Place development next to the company's Morrison Street headquarters.
Neither Standard Life nor Bank of Scotland have agreed to provide funding for the project, but neither has an obligation to do so.
News of the payments comes after the council only managed to secure £1.4m in "tram tax" from the £850m redevelopment of the St James Centre – around £6.5m less than expected.
The council was also forced to settle for a £2.5m tram contribution from the firm behind the planned Morrison Street goods yards development, instead of the £4m it had originally demanded.
It is understood that the council still needs to bank another £40m towards its £45m share of the tramline's costs.
Shirley-Anne Somerville, an SNP MSP for the Lothians, said the council had been "over optimistic" about the funding it would receive from the private sector.
She said: "I am concerned at the lack of developers' contributions that have come in so far. I have always been worried about how over-optimistic the council were in the amount of money they would receive.
"I think it's a question the council's new finance convener, who was previously in charge of the trams, will have to give clear and definitive answers on."
Of the companies contacted by the Evening News, Standard Life said it had no plans to make a financial contribution to the project, while Scottish Widows Investment Partnership said its payment was in line with council policy on planning contributions.
A spokesman for RBS said: "We take very seriously our responsibilities to the fabric of Edinburgh society and economy and always have.
"We invest millions in the city and have employed thousands for many years.
"We were asked to make a contribution to the trams project and we fully intend to give exactly what was agreed with the council."
Councillor Gordon Mackenzie, city transport convener, said: "You can't require people to pay, other than through planning contributions.
"Obviously we would welcome contributions from any business, but I understand finances are difficult in the private sector at the moment, as they are in the public sector.
"That's why we have a 20-year-plus plan for developers' contributions along the tramline."
