THE city council could be forced to pay back up to £8.2m in European funding if Liverpool FC’s new stadium in Stanley Park does not go ahead, the Daily Post can reveal.

A report by the Audit Commission describes the way the council managed European and government grants during the Capital of Culture year, as a “significant issue”.

A total of £8.2m was given to the council to pay for improvements to Stanley Park that would allow the stadium development to begin.

But, according to the report to go before the council’s audit and accounts committee today, “the grant offer was made on the condition that the new Liverpool Football Club stadium will be built in Stanley Park. In the event that this does not occur, then the European Regional Development Fund grant of £8.2m will be repayable.” The council says it is in talks with the club regarding the issue, and has come to an agreement so it is not burdened with the bill itself.

But last night opposition leaders said the council should not be in a position where there is even the possibility it could end up liable for money linked to a commercial venture.

Cllr Joe Anderson said: “A robust arrangement should have been put in place to protect the council, not just on this scheme but on others as well.

“European funding was allocated on the premise that things would happen, and clearly if they’re not happening then there is the risk of the clawback.

“The council’s strategy just seems to be ‘let’s not worry about tomorrow, let’s grab what we can today’ and that approach is not good enough.

“People need answers: where is the money, what is it being used for and who is ultimately going to be responsible for paying it back? These risks should have been carefully considered when looking for funding in the first place.”

The Commission’s Certification of Claims and Returns audit for the year 2008/09 also highlights that the council was left with a bill of around £2.5m to cover a third share of a £7.5m funding shortfall for the Arena and Convention Centre (ACC). It hopes to get the money back from a revised bid put to European funders.

Earlier this year, the Post revealed how the council faced a £2m “clawback” of funding for the ACC, which includes the Echo Arena and BT Convention Centre, because the European Council of Auditors declared the contract arrangements “anti-competitive”.