IT COULD be a potentially devastating blow to the city’s finances – and, indeed, the tax payer – if the much-lauded plan for Liverpool’s new stadium, in Stanley Park, fails to go ahead.

As we report today, a new Audit Commission report has revealed that failure to proceed with the project could leave the city council having to pay back up to £8.2m in European funding.

The council has responded that it has concluded an agreement with LFC which means the city will not be left itself with the full burden of the repayment, should that sadly become necessary.

Further details are in short supply, though, with the council saying they are unable to reveal details of what is a commercial arrangement with the club.

Any £8.2m possible bill, though, is surely small beer compared with the full, ultimate cost if the stadium plan did fail to materialise for any reason.

Liverpool Football Club is one of the city’s key revenue generators.

When, as we said yesterday, any failure on Liverpool’s part to reach the Champions League next season could alone cost them £25m, it is not difficult to appreciate the millions of pounds of income that could be lost if the stadium plan collapsed.