Lib Dem council leader Warren Bradley has called on the Government to re-examine funding Merseytram after the people of Greater Manchester overwhelmingly rejected congestion charging.

More than 1m people took part in the referendum, with 79% against and 21% in favour.

If the result had been in favour of the scheme, Greater Manchester had been promised around £3bn of investment in public transport.

it was not clear what will now happen to the £1.5bn that the Department for Transport (DfT) would have put in through the Transport Innovation Fund (TIF).

In Liverpool, the Lib Dems dismissed calls by Labour politicians for congestion charging, as the city has the capacity for 1m people and is currently only populated by around 500,000.

Warren Bradley said: “The Liberal Democrats in Liverpool have been against a congestion charge in Liverpool, as we don't see the big stick as a way of resolving transport issues.

“By offering accessible regular public transport, there should be no need to levy another form of indirect taxation.”

Councillor Bradley added: “Local politicians have always advocated light rail systems, and I now urge the Government to reconsider their decision over the funding for Merseytram.”

 Merseytravel estimate the cost is now around £430m, of which the Government is to be asked for at least £270m.