OXFORD University last night confirmed it could not give money towards the £125m flood relief channel through the city.

But the lack of cash is not deterring either the county or city councils from pressing ahead with the scheme.

Two other major players – Network Rail and Thames Water – have yet to say if they would help to make up a £40m shortfall.

Yesterday Oxfordshire County Council deputy leader Rodney Rose said the university was still part of the discussions because it owned land through which part of the four-mile channel would run from Seacourt Park and Ride to the Thames at Sandford Lock.

He said: “We invited them into the group because they are a landowner and the scheme could make their land more valuable.

“We would hope in time they would see the benefits and subscribe to the project.

“We had a figure in the back of our mind that we hoped to get from them [Thames Water, Network Rail, Oxford University] and as the scheme takes shape we still hope to get it.”

So far £84m has been secured for the channel – £26m from the Oxfordshire Local Enterprise Partnership, £15m from the Thames Regional Flood and Coastal Committees and £2 million from local councils – and £42 million from central Government.

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But the money secured locally depends on the major partners getting the £41 million remaining amount confirmed.

Oxford Flood Alliance member Peter Rawcliffe said while it was not time to panic there would come a point when the whole scheme could be in jeopardy if the money wasn’t provided.

He said: “I would be very surprised if none of them contributed. As time goes by there will be increasing pressure on these companies.”

Oxford University spokesman Matt Pickle said: “We cannot make a financial commitment to the project because we must prioritise our core academic mission of teaching and research and only our land at Egrove Park would be affected by the proposed channel.”

“But we are in discussion with the County, City and LEP about a proposal to offer them the use of our land for the proposed work.”

Mr Rose said if they could get the land without “aggravation” it would lower the cost of the scheme but he didn’t rule out a Compulsory Purchase Order (CPO) if the university didn’t offer the land needed. He also suggested funding could come from local business.

Oxford City Council leader Bob Price said he was confident they’d find the shortfall: “We have a number of options available to us. There is a significant possibility of funding from the EA, Defra and the Local Growth Fund.”

Network Rail said yesterday the only work it planned to fund was flood alleviation work at Hinksey.

But Mr Price said discussions were ongoing about raising the railway line south of Redbridge.

He said: “If this is done that will be a significant contribution by way of physical works.”

Thames Water, another sponsor, said it would consider making a contribution if the scheme was of benefit to its customers.

Spokeswoman Becky Trotman said: “Should the scheme have clear benefits for us and our customers we would consider a financial contribution to the cost but it is too early to make a decision.”

President of the Oxfordshire Chamber of Commerce Peter Smith said the flood relief channel was greatly needed for the economy but added: “The suggestion that the funding could come from local organisations that are already paying local and national taxes is not welcomed by the chamber. All avenues should be explored but this type of infrastructure should be funded largely by public money.”

Environment Agency spokeswoman Hayley Willoughby said it had no contributions agreed with partners at present, but that was “in line” with expectations.

But Dr Kate Prendergast from the Sustainable Flood Plan Group warned talk of funding is premature. She said: “It seems ridiculous that anyone can be speaking of funding when we don’t know what we are funding.”

Oxford West and Abingdon MP Nicola Blackwood said residents would be shocked if the major players did not do what they could to help.

She added: “The £84 million secured is sufficient to give the go-ahead for the scheme and get the preliminary work under way to start protecting people’s homes as soon as possible.”