Boris Johnson has refused to correct a false claim he made about funding for the body tasked with improving transport in the north of England.
Transport for the North was told in January by the department that their budget would be reduced from £10m in 2020/21 to £6m in 2021/22.
But yesterday, the Prime Minister claimed there was "no such cut" - which came as a surprise to northern leaders.
Liverpool Metro Mayor Steve Rotheram said the PM's claim was "categorically untrue."
And today the Department for Transport, who are in charge of the budget, refused to say whether the PM’s claim was true or not.
At Prime Minister’s Questions yesterday, Labour MP Diana Johnson asked: "Is the 40% to to Transport for the North's Budget part of the PM's plans for levelling up the North?"
The PM replied: "There has been no such cut and we intend to invest massively in Northern Powerhouse Rail, in railways for the north and across the entire country."
Mr Rotherham said yesterday: “The government's cut to Transport for the North flies in the face of their talk of 'levelling up'.
"How is the North supposed to catch up when we're always cut first and deepest?!"

Asked about the Mr Johnson’s false claim, his spokesman insisted Transport for the North would still have “access” to increased funding.
And he said the PM “rejected” the idea that funding for northern infrastructure was being reduced - despite that not being what he said in the Commons.
He was unable confirm whether the planned cut was going ahead, adding: "I've talked through the amount of money that TfN is able to access for their work going forward and I don't have all the numbers in front of me.
"But as I say, the Prime Minister doesn't accept there's been a cut to funding in terms of transport investment and infrastructure in the north."
Asked if the Prime Minister believed truth and accuracy were important in his public statements, Press Secretary Allegra Stratton said: "Yes, of course he does."
A Department for Transport spokesperson said: “This Government is absolutely committed to delivering the upgrades to level-up the North, building on more than £29 billion invested in transport across the north since 2010.
“In the next financial year, TfN have access to over £70m of funding, the majority of which will help develop proposals for Northern Powerhouse Rail. There is also a significant proportion of money remaining in their reserves, enabling them to carry out all their statutory functions effectively.”
Labour Shadow Transport Secretary Jim McMahon said yesterday: "Either the Prime Minister thinks he can lie with impunity or he simply wasn’t aware that he has cut the budget of Transport for the North by 40 per cent. It’s hard to know which is more damning.
“Whatever the explanation, he should return to the House of Commons and put the record straight. The reality is the rhetoric may have changed but the Tory record remains the same - and it’s one of the north losing out under Conservative governments.”