THE DEPARTMENT of Transport was hauled into the High Court on Tuesday by disgruntled backers of the disbanded Merseytram scheme.
High Court judge Mr Justice Sullivan was due to decide yesterday (Wednesday) whether the department had acted illegally by withholding £170 million promised for the £300 million scheme in Liverpool.
Merseytravel, the passenger transport authority behind the scheme, claims the DoT broke its promises and introduced unreasonable conditions.
Laing O'Rourke had won the deal to build the tram but the project was scrapped last year when the Government failed to back it.
The Government also faces trouble over the Leeds Supertram, cancelled last year.
Leeds North West Liberal Democrat MP Greg Mulholland is calling on the National Audit Office to investigate whether public cash was used on the scheme even after the department had privately decided to axe it.