LIVERPOOL council is threatening legal action against the government – fearing ministers are preparing to backtrack on allowing cruise liners to start and finish at the Pier Head.

The city is concerned ministers have had a change of heart on an agreement for Liverpool to satisfy State Aid rules by paying back £5.3m of the £21m grants used to fund the waterfront facility.

The Department for Transport came under huge pressure from Southampton and Newcastle, during a consultation which ended in September.

The two cities are worried about the potential impact on their own cruise businesses.

The council is prepared to launch a judicial review if the DfT reaches a decision that officials in Liverpool believe is against the spirit of what had previously been agreed.

Liverpool already has 16 cruises pencilled in to use the terminal starting in April – but council leader Joe Anderson says the city needs a decision as soon as possible.

To be able to use the terminal from April, planning permission for a luggage and passenger facility must be secured first.

The lucrative cruises are worth around £1m each to the city’s economy, said Cllr Anderson.

But last night the DfT would only commit to delivering a verdict by the end of the year.