BOLTON's transport plans for the next 10 years have been thrown into chaos by the Government's decision to shelve the expansion of the Metrolink tram system.

A number of major projects may now have to be scrapped as Town Hall bosses face up to the prospect of missing out on £18 million. Bolton had been promised the money to compensate the town for not being included in the Metrolink expansion. Council chiefs intended to use the cash to develop the town's transport network.

Among the high profile schemes now under threat is the building of a new rail and bus interchange and a redevelopment which would transform Churchgate into an arts and festival quarter.

It could also mean the end of plans to extend the network of bus lanes in areas such as Great Lever, Kearsley, Tonge Moor and Chorley Old Road.

New bus shelter information boards, improved signs and the installation of CCTV cameras could also be abandoned. Consultants are currently preparing a report into the building of a new rail and bus interchange at Trinity Street -- and possibly relocating the Moor Lane bus station to the site.

Bolton Council leaders today admitted they feared the scrapping of the plans would have a huge impact on Bolton's future prosperity.

Cllr David Wilkinson, the council's new executive member for environment, said it would be a "disaster".

He said: "All these schemes are important to the viability of the town and attracting people, jobs and investment into the borough.

"The knock on effect is to create a worse economic position in Bolton.

"I think everybody had a long term hope that one day the Metrolink would come to Bolton and I think everyone will be looking at what can be salvaged."

Trams currently run from Bury, Eccles and Altrincham into Manchester, serving key areas such as Radcliffe, Salford Quays and Old Trafford.

Proposals had been put to the Government for more routes to Stockport, Oldham, Rochdale and Manchester Airport. But the estimated cost of the expansion rocketed and, although the Government had promised more than £500 million towards the expansion, it made a dramatic U-turn this week, angering councillors and MPs across Greater Manchester.

The decision to deny Metrolink funding came despite £200 million already having been spent in Greater Manchester on clearing routes for tram lines. Many homes have been demolished in preparation.

Now, with the Metrolink system in doubt, it is felt Bolton's £18 million "compensation" for not being involved is also uncertain.

Transport bosses had hoped to bankroll the schemes with money from the Transport and Infrastructure Fund (TIF) - given to Bolton as compensation.

But they fear the funding could be withdrawn after Transport Secretary Alistair Darling scrapped plans for a wider light rail network.

Bolton Council chiefs today urged the Government to keep making Transport Infrastructure Fund payments to the town.

The town's MPs were also demanding to know why Metrolink expansion plans have been shelved.

David Crausby, MP for Bolton North-east, said: "There is a serious knock on effect for Bolton in this decision.

"It is enormously important that the plan for a new rail and bus interchange does not fall by the wayside and that Bolton gets the first class public transport it needs."

Brian Iddon, MP for Bolton South-east, said: "I can understand council officers' anxiety and who can say what impact this decision will have?

"I will be very annoyed if Bolton's money is taken away but the Government will not be hurried into taking a decision on this matter."

Bolton West MP Ruth Kelly said: "I will be writing to the Department of Transport outlining my concerns over TIF funding and seeking clarification on this matter."

Ray Jefferson, director of environment at Bolton Council, today admitted that the future of projects could not be guaranteed.

He said: "We are anxious that this decision by the Government may put at risk our TIF funding. It may be that we have to go back to revise our projects."