THE ambitious supertram project designed to take thousands of cars off roads across our communities has today suffered another costly setback.

The government has postponed making a decision on whether it will bail out the £290m Light Rapid Transit Scheme linking Fareham, Gosport and Portsmouth.

Department of Transport spokesman Ben Herbert said an announcement would be made next month - weeks later than originally planned.

"The scheme is still under review and a decision is expected in several weeks time," he said.

The latest delay has left Hampshire transport bosses in limbo.

They cannot appoint one of two shortlisted consortiums to build and run the project until they know the extra government money is available.

With every week that passes the project's price tag continues to rise.

Hampshire County Council leader Ken Thornber, said: "It's not good to have another delay.

"Our tenders want as much certainty as possible and every delay incurs more inflationary costs.

"We understood the government would make a decision this month. We are in their hands.

"It is very, very disappointing that they cannot alleviate all of our concerns in the month they said they would."

If no money is forthcoming the whole project, first mooted 19 years ago, will once again be thrown into jeopardy.

Military chiefs are being blamed for adding millions of pounds to the supertram scheme by demanding the underwater tunnel below Portsmouth Harbour is made deeper.

The changes are required to allow the Royal Navy's new aircraft carriers to come and go in and out of the harbour.

Increasing construction costs have also seen the cost of the scheme leap by £100m from £190m to £290m. Of the new £100m it is estimated Portsmouth City Council taxpayers will have to pay £7m, with central government paying about £75m. The remaining £18m will be made up from various mechanisms involving public money. Any outstanding interest payments may have to be made up by the county council.