THE £120M plan to protect Oxford from flooding has received a big boost in the form of fresh Government backing.

The 'outline business case' for the city's flood alleviation channel has been approved, despite the project still needing £4m in funding.

The Environment Agency revealed this week that the Treasury signed the plans off in November.

Now the agency is preparing to submit its official planning application and hopes to start work on the three-mile flood channel around Oxford next year.

Funding manager Jon Mansbridge said: "The outline business case for the Oxford Flood Alleviation Scheme was approved by HM Treasury last month and we are now working on the detailed design for the scheme and preparing for the planning application submission so that we will be ready to start construction in winter 2018."

The three-mile channel, which would divert flood water away from Oxford city centre, is planned to run from Botley Road and re-join the River Thames near Kennington.

It is hoped the channel will protect more than 1,200 homes in West Oxford, following several cases of severe flooding, most recently in 2013/4.

Mr Mansbridge's positive attitude comes just three months after he warned that if the EA could not find the remaining £4m 'by November', it could result in the project 'stopping'.

He told Oxfordshire Growth Board that month: "While we have been very successful in securing 93 per cent of the required funding, if the current £4.35 million funding gap is not closed by November 2017 the project will be unable to demonstrate a fully funded position to support business case approval and commence a Compulsory Purchase Order process."

However, this week the EA said that November had been its own 'internal deadline' to secure funding and it had never talked of 'abandoning' the project.

Mr Mansbridge continued: "Commercial negotiations are ongoing alongside work with our scheme partners to increase their financial commitment to the scheme.

"Oxford Flood Alleviation Scheme partners are fully committed to the scheme."

It is understood the EA is trying to persuade major city businesses and the two Oxford universities to help fill the gap.

The Department for Environment, Food and Rural Affairs (DEFRA) confirmed that the Treasury had signed off the plans, and that the government's pledge of £42m towards the scheme was not dependent on the EA finding the rest of the money.

However a spokesman did confirm to the Oxford Mail the EA was still required to find the final £4m.

The scheme received another boost this week as an independent report concluded the channel would have 'no impact' on communities downstream.

The investigation was commissioned by Vale of White Horse District Council after people in Radley, Kennington and Abingdon raised concerns that diverting water away from Oxford city centre could push flood risk downstream – despite EA modelling showing it would not.

The new analysis by Water Resource Associates reviewed the EA's work and confirmed the scheme would not create any greater risk to flooding.

Dr Harvey Rodda from Water Resource Associates said: “The results showed there would be a negligible impact of flooding on the areas along the downstream reach of the River Thames from Sandford to Mapledurham.”

Vale leader Matthew Barber welcomed the 'very positive news', adding: "Although we have always been supportive of the Oxford scheme it was important for us to listen and respond to our residents' concerns. We're pleased that the independent review findings confirm the Environment Agency's modelling, providing much needed reassurance for downstream communities that they won’t be impacted by the new scheme."

It is hoped work on the flood scheme can to start in winter next year, with the construction taking three years.