Edinburgh's £25m Meadowbank Stadium redevelopment on hold

The £25m redevelopment of Edinburgh’s Meadowbank Stadium has been suspended.

The two-year project was due to start in 2011 but has been put on hold until land values recover.

Councillors had agreed earlier this year to sell of one third of the stadium land to help pay for a new arena on the site.

But the value of the land is estimated to have dropped from £17m to just £5m.

Edinburgh City Council finance leader Gordon Mackenzie told the BBC: “Edinburgh is feeling the effects of the credit crunch and we are adjusting our plans accordingly.

“The decision to postpone the Meadowbank project is difficult from a sporting perspective but financially it looks inevitable.

“We have experienced a significant drop in land values and the numbers simply don’t stack up at this time.

“When the finances of the council are stronger we will look to move the project forward again.”