 The Merseytram scheme has been hit by rising costs |
Merseyside's planned tram network has moved a step closer after Liverpool's ruling party said it would bail out the project if it went over budget. The Merseytram scheme costs have risen since it was approved in 2002 and the government has said it will not back the project at any price.
Knowsley Council will underwrite �25m but Liverpool City Council needs to do the same for the project to go ahead.
The Liberal Democrats have said they favour underwriting the scheme.
The council's executive board meet to discuss the project on Friday, but the Lib Dems' decision means it is almost certain to be approved.
The Department of Transport has already pledged �170m towards the overall cost of the scheme.
Keolis, the company chosen to run the trams, has already pledged that they will be up and running during Liverpool's Capital of Culture celebrations in 2008.
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