THE go-ahead will be given for the second Mersey Crossing by the end of the year, bullish MPs predicted last night.

Hopes were raised after Transport Minister Tony McNulty praised Halton Borough Council for its hard work to overcome concerns that have held up the £335m scheme.

Fresh proposals will now be submitted to the Department for Transport in the autumn - with a decision that the project can go ahead expected soon afterwards.

But Mr McNulty hinted strongly that it would be paid for through a mixture of tolls and private finance, rather than funds granted directly by the Government. The minister's comments came during a Commons debate to assess progress since the Department of Transport put the brakes on the scheme last autumn.

Ministers raised fears about its environmental impact on the River Mersey, the effect on local trunk roads and expressed doubts over funding.

Supporters of the 1.7 mile-long bridge, at Runcorn, claim it is badly needed to ease congestion on the Silver Jubilee bridge and must be completed by Liverpool's Capital of Culture year, in 2008.

Furthermore, the Mersey Crossing Group believes up to 5,000 jobs could be created, sparking a £90m increase in commercial property values and a 5pc rise in house prices.

Speaking in the Commons, Mr McNulty insisted the objections had not been raised as a means of "kicking the scheme into the long grass".

He told MPs: "We absolutely recognise that there are significant congestion problems on the existing Silver Jubilee bridge. There are real problems, especially at peak hours.

"And, when there are circumstances that cause that bridge to be closed, it causes massive traffic chaos in the area. I accept that.

"It is about getting the decision right for Halton and the entire region and I would like to congratulate Halton Borough Council on how it has brought things forward."

Speaking afterwards, Mike Hall, Labour MP for Weaver Vale, who led the debate, said: "The minister was very positive and has given this project a significant boost

"The Department of Transport has asked for more work to be done, but I'm confident that work will be submitted and we will get a positive decision before the end of the year."

Mr Hall said the project was still on course to start by its target date of 2007, after a public inquiry.

The Silver Jubilee Bridge was opened in 1961 and was designed to carry a maximum of 60,000 vehicles a day. It now carries up to 90,000 vehicles.