The Scottish National Party (SNP) has pledged to halt Edinburgh’s transportation plans including tram and airport rail link projects by cutting off £1.1bn of funding.

However, according to TIE, the company promoting the schemes, compensation for breaking contracts and redundancy payments have been estimated at between £27m and £35m. This would come on top of an estimated £79m which has been spent on the project to date. It is estimated that spending on the project will hit £119m by the time the final business case is due to be presented to the Scottish Parliament in the autumn, if planned roadworks go ahead in the coming weeks.

First Minister Alex Salmond refused to completely rule out the trams scheme, but he dampened hopes of a softening in the SNP’s stance by questioning why so much money has been spent so far without a single track being laid.

Graham Bell, spokesman for the Edinburgh Chamber of Commerce, believes this project must go ahead. He said: “It will make us the laughing stock of Europe if we don’t see this project through. There will be knock-on effects not just for businesses already in Edinburgh but also those looking to invest here.