MERSEYSIDE’S plans for a tram system have been “virtually killed off” by the Government, a month after the scheme was formally revived.

Transport minister Sadiq Khan has written to civic leaders in Merseyside telling them they have missed a crucial funding window for the £400m-plus Line One Liverpool to Kirkby.

He has warned transport authority Merseytravel and councils to “look carefully at their continued development of the scheme”, which has already had more than £70m spent on it without a single track having been laid.

He said there were other ways the objectives of the Merseytram scheme could be met and other key transport issues that needed addressing in Merseyside.

Liverpool Council leader Warren Bradley said: “This letter virtually kills off Merseytram once and for all.”

And Sefton Council leader Tony Robertson said Merseytravel had needed to persuade the Government to spend a significant amount of money. He added: “It’s fairly clear that the Government is not for doing that.”

Merseytravel declined to comment. Last month it was revealed Merseytravel had hired accountancy experts Deloitte to carry out a capital review of the scheme costs.

This report had been expected to be presented to Merseyside council leaders soon, and it had been hoped a business case could then be presented to the Department for Transport.