Plans for a tram system in Liverpool were up in the air this week when the Government announced it would not fund the project unless costs were cut.

Transport Secretary Alistair Darling refused Whitehall funding after the costs for the project soared by 40% to £238m.

In a Commons written statement, Darling said: “While I support tram schemes, I cannot do so at any cost. In the light of all the information, I have therefore concluded that I cannot approve the proposal for Line 1.”

He said the £170m he had provisionally set aside for the scheme remained available if the light rail system could be brought back to budget.

If it could not be, then funding would be found for suitable alternative proposals to improve transport links in the affected areas.

He continued: “I appreciate that Merseytravel has made every effort to keep costs under control. However, it is clear that costs remain considerably higher than those I approved and that this scheme is an expensive way of delivering these transport benefits for Merseyside.”

The news is a blow for Laing O’Rourke and Grant Rail, the preferred contractors for the civil engineering works on Line 1 of the scheme.

Source

QS News