The �500m engineering project is the biggest ever in Leeds

MPs met Transport Secretary Alistair Darling on Wednesday amid claims the transport system would be shelved because of spiralling costs.

Conservative councillors said the �500m project was in doubt after costs doubled to an estimated �1bn.

Leeds North East MP Fabian Hamilton, who attended the meeting, said there was no question of it being suspended.

Smaller scheme

He told BBC Radio Leeds: "I thought we got very strong assurances that Supertram will go ahead.

"But, of course, given the price has doubled in three years, the Secretary of State needs to re-evaluate whether it is a good use of public money.

"I think it probably means we are looking at a smaller scheme."

Mr Hamilton said the government was still committed to providing �500m for the scheme, which was first proposed three years ago.

But the original plans for the project could probably only go ahead if the extra money was found locally, he added.

Constructive meeting

He said: "The original money is there but the extra money we are asking for, because of these rises in costs, simply is not.

"I don't think you would expect any minister, in any government, to say three years on 'the costs have risen so we'll just pay the bill'."

"But Supertram will go ahead - it will not be suspended."

In a statement, the Department of Transport described the meeting with Leeds MPs as "constructive and positive".

The department's main concern about the scheme is that costs have more than doubled although it has always said it must offer value for money, the statement added.

A final decision on the Supertram's future is not expected for a number of months.