Delays to schemes such as Leeds Supertram have been put down to a string of policy and administrative problems at the Department for Transport (DfT).
The House of Commons Transport Committee report also restated the case for trams in British cities, which it seemed the Government "no longer wholeheartedly supported".
MPs accused the DfT of a lack of expertise in light rail and of being too slow to process applications, causing project costs to escalate.
Last night Yorkshire tram project leaders welcomed the report, saying it underlined points they had already made.
The Department had "failed to give a strategic lead in the development of light rail" and had refused to trust local authorities' estimates of their own requirements.
It had also "required repeated re-examination of bus schemes which had already been rejected" and deregulation of the bus market had adversely affected use of tram schemes such as Sheffield's Supertram.
The MPs, who also criticised the DfT for not implementing all of Parliament's 2000 recommendations, said the private sector should no longer be expected to shoul-
der most of the financial risk.
They concluded that building a light rail scheme in the UK could cost 60 per cent more than building one somewhere else in Europe.
The Manchester Metrolink project ran into difficulties when costs rose from £282m in 2000 to £900m last year.
Leeds Supertram is waiting for approval of its re-submitted November application after funding was withdrawn when costs rose from £355m in 2001 to £500m in 2004.
Kieran Preston, director general of Metro, West Yorkshire's public transport co-ordinator, said the report "recognises that new tram schemes are extremely pop-
ular with the public and have been successful at luring motorists from their cars on to public transport, therefore combating congestion.
"It echoes what we have been saying all along, including the fact that on the right routes trams can be significantly more cost-effective than bus alternatives, and will I hope encourage the DfT to give Leeds Supertram the go-ahead, before our powers elapse and the scheme is further delayed by default."
Sheffield planners said it hoped the recommendations would benefit plans to extend the city's tram system to Rotherham.
Director general of South Yorkshire Passenger Transport Executive Roy Wicks also welcomed the report.
He added: "One of the things we are concerned about is the changing of the goalposts, having to apply under different structures which doesn't help build confidence in the market."
jane.charnley@ypn.co.uk