UNCERTAINTY surrounds the future of a much-heralded extension to the Borders Railway after £10 million in funding was placed on hold.

A feasibility study is earmarked at putting on track the extension to Hawick, Newcastleton and on to Carlisle.

But funding to cover the costs of the study has stalled as Prime Minister Keir Starmer’s government looks to plug a £22b ‘black hole’ in public finances that ministers say was left by the previous Tory administration.

The delay is to consider the findings of ongoing capital investment review over the costs of several major projects.

Scottish Borders Council (SBC) convener Watson McAteer admitted the latest development was a concern.

He said: “It is a concern given what was a positive direction of travel and it does introduce an element of uncertainty.

“The letter from the minister does not say no to the funding but it is annoying that we have to wait.

“Scottish Borders Council did not want to wait and has recently ratified funding for the appointment of a senior project manager.”

In July, secretary of state for transport Louise Haigh said the financial inheritance the government had received was “extremely challenging”.

“Communities up and down the country have been given hope for new transport infrastructure, with no plans or funds to deliver them,” she said. “In recent weeks, the gap between promised schemes and the money available to deliver them has been made clear to me. There has been a lack of openness with the public about the status of schemes – some of which were cancelled or paused by the previous government, without proper communication to the public.

“I am commissioning an internal review of DfT’s capital spend portfolio. We will bring in external expertise and move quickly to make recommendations about current and future schemes.”

Stalling of the feasibility funding comes after the UK government was also accused of “dragging its heels” over funding needed for pushing ahead with the appointment of the project manager.

SBC recently agreed the three-year appointment, at the cost of £220k.

The successful candidate will be tasked with pushing ahead with the proposed railway line extension from Tweedbank to Carlisle.

They will lead the delivery of the business case and feasibility work associated with the extension.

Both the UK and Scottish Governments have previously agreed this appointment could be funded equally, as part of the commitment already made by ministers to jointly invest up to £10 million in the delivery of the Borders Railway extension feasibility work via the Borderlands Inclusive Growth Deal.

A Transport Scotland spokesperson said: “The Scottish Government recognises that extending the Borders Railway to Carlisle is a regional priority.

“Scottish Government and Transport Scotland officials have confirmed to SBC that we are content with their proposal to recruit a project manager to lead this work.

“However, because the work is cross border and jointly funded through the deal by the UK and Scottish Governments, the release of our funding is contingent on SBC receiving confirmation from the DfT that the UK Government share of the project manager costs will be met. Officials are currently engaging with the DfT to confirm the timeframe for their decision.”

The original 98-mile (158km) Waverley Route between Edinburgh and Carlisle closed in 1969.

A 30-mile (48km) section, between Edinburgh Waverley and Tweedbank, reopened in September 2015, at a cost of £294m.