Wednesday June 24th 2026
Lothian Buses and Edinburgh Trams Boards merged in late 2025
Written by Midlothian View Reporter, Liam Eunson
Edinburgh Council leader has called for an investigation into a £327,000 ‘golden goodbye’ severance package that was given to Edinburgh Trams previous boss prior to the merge with Lothian Buses.
Writing to Edinburgh Trams chair, council leader Jane Meagher is calling for an immediate investigation into whether proper procedures were followed, expressing that she was ‘deeply concerned’ by the scale of the payout.
Unite the Union have slammed the severance payments, labelling them as ‘an abuse of public funds’, after the former boss received thousands of pounds of public money as part of the deal.
Former managing director of Edinburgh Trams, Lee Harrision, left his post at the end of January last year after 10 years, just before the company merged with Lothian Buses. His large severance check was approved by the now-disbanded Edinburgh Trams Board in August 2025.
After leaving the role, Harrison took up a new post as the managing director of Blackpool Trams where he is reportedly on a six figure salary.
The company’s 2025/26 accounts, which are set to be presented to a full council meeting tomorrow (Thursday), reveal that Harrison received a salary of £187,283 alongside his large pay off.
In the addendum tabled for tomorrow’s council meeting, the local authority voiced the accounts ‘with grave concern’ towards the money paid for compensation, calling for an immediate investigation to ‘determine whether all relevant policies and procedures were followed in the awarding of this sum’.
Calling for an investigation, Council Leader Jane Meagher explained:
“While this was a decision taken by the former board of Edinburgh Trams, I am deeply concerned and disappointed by the scale of this compensation package. We rightly expect our council companies to deliver value for money, and I cannot see any justification for someone already on such a high salary receiving this type of pay-off for leaving their job.
“We have written to the chair of the new board asking them to investigate whether proper procedures and board approval processes were followed in the agreement of this package. We now have a new relationship with the tram company – a new chair and a new board – and have strengthened our oversight and reporting arrangements to make sure this can never happen again.”
Unite the Union expressed that they believe an urgent inquiry into these ‘excessive severance payments’ must be initiated by Edinburgh council over the governance processes which allowed the misuse of public funds, prompting the question of where was the governance?
Lothian Buses and Edinburgh Trams Boards merged in late 2025 on the instruction of Edinburgh council creating a single board as part of Edinburgh’s wider transport reform programme with Sarah Boyd was appointed as its new chief executive to oversee the integration.
In documents to be presented to Council, Unite explained that they further understand that Lothian Buses also authorised a £120,000 severance payment to its former engineering director.
Alongside this, it was revealed that Harrision also received £5,583 of ‘other benefits’. So, his high salary and money from other benefits, plus his pay-off, brought his total remuneration to £520,579.
A spokesperson from Lothian and Edinburgh Trams explained:
“The remuneration of Edinburgh Trams’ Managing Director was a matter for the previous Tram Board under the governance arrangements in place at the time.
“The payment to Lothian Buses’ previous Engineering Director was made in accordance with contractual obligations and established governance processes. Such arrangements are carefully considered and are designed to protect the interests of the business while ensuring contractual commitments are met.
“As part of wider integration and governance work, senior remuneration is subject to robust governance, informed by independent benchmarking and overseen through established Board protocol and committee arrangements.”
Labelling the investigation as a scandal, Unite general secretary Sharon Graham explained:
“These payments are an abuse of public funds. The money would have been far better spent on improving the transport network, and workers’ terms and conditions. It’s nothing short of a scandal, and action must be taken.”
Unite industrial officer Lyn Turner added:
“Serious questions arise about why such excessive golden goodbyes were authorised by both Edinburgh Trams and Lothians Buses. Where was the governance?
“An immediate inquiry must be held by the council because it appears that there were no proper checks and balances in place. It’s a disgrace, and the people of Edinburgh should be outraged.”
The addendum tabled for the full council meeting says: “Council notes with grave concern the sum paid to the former Managing Director of Edinburgh Trams Ltd as compensation for loss of office and considers this amount to be excessive.
“Council also notes that this decision was taken by the previous Board of Edinburgh Trams Ltd and further notes that the new Board have displayed willingness to investigate this matter.
“Council agrees an immediate investigation into this matter is required to determine whether all relevant policies and procedures were followed in the awarding of this sum, notes that officers have already sought assurance from the Chair of Edinburgh Trams and instructs an update to Members on the findings and recommendations through the most appropriate channel.”
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