Merseytravel has never given up hope that the project could go ahead, and it has remained the top priority in the Local Transport Plan ever since it was first proposed.

Construction work on a huge park and ride facility at Gillmoss, off the East Lancashire Road, started in January.

But a crucial sticking point has been the failure to get the scheme listed as a regional funding priority.

Liverpool’s Labour group leader, Cllr Joe Anderson, is desperate to have Merseytram replace a new £200m link road from Switch Island to the Port of Liverpool, which is currently ahead of any tram works.

On hearing news of Manchester's cash boost, Cllr Anderson said: “As far as I'm concerned, this proves that if you make a strong enough case and if you take that to the Government, then the Government will listen.

“I'm encouraged that the DfT has provided money for light rail capability because I think that signals that Liverpool can still push for its own rail system, and I think that's what it will continue to do. It gives us more ammunition to say if you're supporting Manchester's, why can't you support ours.

“But the fact is we can't continue to lobby the Government for funding unless we can convince our own district leaders to support it.”

But Cllr Bradley said: “I think it’s an absolute disgrace. It’s political posturing at its worst.

“It’s a smack in the face for the people of Merseyside.”