Tony Blair has told the M.E.N. the money originally pledged to the scheme is still available but some senior MPs say they believe the cash had already been earmarked to be used elsewhere.
'200m has already been spent in Greater Manchester preparing the way for the tram lines, now questions are being asked about the remaining money.
However, the government denies it pulled the plug on the tram scheme to find the money to bankroll a reform of the railways nationwide announced last week. It insists it was because costs almost doubled to '1 billion.
Others say Manchester has lost out because the cash has instead been handed to the south, with around '340 million promised for Transport for London to help improve transport to help the capital's 2012 Olympic bid - and a pledge to bring in a new Bill bringing in powers for the city's '10 billion `Crossrail' scheme to be built.
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