A CASH crisis is threatening to engulf the security operation for this year’s Liberal Democrat party conference in Liverpool.

The policing of Government and official opposition party conferences is usually bankrolled by the Home Office.

But bureaucrats are so far refusing to foot the bill for the Lib-Dems’ September meeting.

There are now fears Merseyside tax payers could be made to pick up the cost.

Merseyside Police said because the party is now in Government the conference at the BT Convention centre needs a heightened security presence.

Previous Lib-Dem conferences have never needed such large operations because the party has never had a Government minister or been the official opposition.

Merseyside’s chief constable Jon Murphy said now party leader Nick Clegg is deputy prime minister and the party has four other cabinet ministers, the conference will be a bigger security risk than previous gatherings.

Forces usually apply for a “special police grant” to cover the cost of policing party conferences. But applications need to be lodged with the Home Office in the December before the Autumn conference. Because no-one knew the Lib-Dems were going to take a Government role Merseyside Police did not submit an application.

The force is understood to be preparing a bid for the grant but the Home Office has so far refused to confirm it will accept it in the shortened timeframe.

With budgets stretched across the public sector, no one seems to be willing to offer to pay for the operation.

But in a report sent to Police Authority members, Mr Murphy was candid about the risks of staging a lack lustre security operation.

He said: “The Liberal Democrat Party are now a party of Government; their annual conference and the risks associated with it have now assumed a much greater significance, and the policing operation is intended to reflect that change.

“Overall, the threat from international terrorism is ‘severe’ meaning an attack is likely and could happen without warning. The threat towards the new cabinet is considered low/moderate.

“No specific threat exists towards party conferences, but that assessment is made on the basis that since 1984 [when a bomb went off at the Conservative Party conference in Brighton] significant mitigating security measures have been put in place for the party of Government or opposition.

“The risk of damage to the reputation of Merseyside Police and its partners is significant. Any party conference attracts worldwide media attention, and the levels of interest in the Liberal Democrat Party and the Coalition of which it is part has spiralled in recent months.

“There is a long history of attempted infiltration of conferences and corresponding attempts to embarrass the authorities or the parties themselves.

“Failure to deliver a successful conference, particularly in the current economic climate could be damaging.”