Prof Redmond said: “He said he was disappointed with the way his letter had been interpreted.

“He said it was not meant to be a negative letter but set out how to keep the scheme alive.”

Ed Oliver, chairman of the Chamber of Commerce said he was pleasantly surprised the delegation were not up against a closed door: “He highlighted the areas that had probably gone against us in the past.

“What we need to do is drum up local support.

“We have to find 25% of the funding, but that can be achieved in various ways, it should not be a problem.”

Frank McKenna, of Downtown Liverpool in Business, said collective agreement across the city region would be vital.

“From the perspective of the business community, there is still overwhelming support,” he said.

But Cllr Bradley, who was not in the delegation, said: “I think the letter was quite clear, and the Labour government’s position has been since it removed funding for light rail schemes five years ago.

“We have now got to work collaboratively to identify priorities for a transport infrastructure that is fit for the 21st century. The £400m that is needed for Merseytram is not available. There needs to be a discussion about the financial implications on local authorities.

“It is going to be difficult for politicians to commit expenditure at this moment in time.”