Calls for the Scottish Government to intervene as controversial tram project in Scotland's capital city hit again by spiralling costs and delays.

The multimillion pound tramway system that has been under construction in Edinburgh since 2008 has been plagued from its start by a series of delays, budget over-runs, and contractual disputes.

In the latest turn of events, Edinburgh council had to backtrack on a new proposal that would have saw the line terminate more than a mile outside the city centre at Haymarket as the Scottish Government stepped in and threatened to withdraw funding for the works.

The First Minister of Scotland, Alex Salmond, also announced that a public inquiry will be held into the project.

The council's management of the project has been strongly criticised by the media and citizen groups, and the Scottish Government has faced calls to intervene in order to bring the costs under control.

Originally costed at £375 million and scheduled to enter service in February 2011, the current estimated cost stands at over £1 billion and the estimated completion date is 2014. The original city tramway network has also been reduced to a smaller line going from the airport to the city centre.