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We'll see you in court, Mr Blair
 

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Nevertheless, Mr Howarth said the Government should have been willing to accept Merseytravel's pledge that costs would be kept under control.

Cabinet member Cllr Richard Marbrow said: "Any allegation this is down to the officers is simply untrue.

"At the end of the day both Liverpool and Knowsley officers agreed it would be illegal to provide the blank cheque the Government was asking for.

"I am deeply ashamed of the Government today."

"The tram has been killed off by the Government and no one else.

"They have put every conceivable obstruction in our way to try and stop the tram going ahead."

Riverside MP Louise Ellman refused to get involved in any slanging match, insisting all parties had tried their hardest to find a solution to rescue Merseytram.

She added: "Elected members are in charge of the council. I think it is the Government that went cool on the scheme."

But Ben Chapman, Labour MP for Wirral South, welcomed the fact that Wirral would now enjoy an  "equitable share" for transport spending.

He added: "I have had concerns both about the merits of the proposal and the fact that Tunnel users might be called upon to pay for it."

deborahjames@dailypost.co.uk

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