TRANSPORT chiefs have until the end of March to secure £450m of funding for Merseytram – or it will be axed.

The Liverpool region’s super cabinet wants to see transport authority Merseytravel secure the cash from government or through private finance for Line 1 from Liverpool to Kirkby.

The resolution passed by the region’s leaders states that if Merseytravel fails to get a legally binding commitment to finance the scheme by March 31, 2010, it should be “discontinued”.

The cabinet also told Merseytravel it will not support the use of tunnel tolls or an increase in council tax to raise money for the scheme.

It is another massive blow for the project leaving Merseytravel facing an uphill struggle to secure a deal in four months. Merseytravel presented its plans to the super cabinet after the Government said that the scheme must have the support of all councils in the area before it would consider handing over any cash.

While the cabinet gave its support to the scheme the tight deadline set down makes life difficult for Merseytravel.

Privately many politicians admit the current state of the nation’s finances mean the Government would struggle to fund the project.

The Government has also said it would expect Merseytravel to contribute 25% of the costs.

In September the Daily Post revealed how Merseytravel had been quietly been working behind the scenes to revive the scheme.

But last month transport minister Sadiq Khan appeared to kill off Merseytram.

In a letter he stated Merseyside had missed its chance to get the scheme into a North West regional funding allocation.

He also warned local authorities to “look carefully at their continued development of the [Merseytram] scheme”.

After the letter was made public, he told leaders that he was “misinterpreted” and is due to write another letter to “clarify” his position.

Last night Merseytravel chairman Cllr Mark Dowd said: “The decision of the Liverpool City Region Cabinet is that we keep on talking about what we can do with Merseytram Line One.

“At the moment we are awaiting the formal resolution of the cabinet but it is important that this dialogue continues.