MORE than £20m of public funds could be used to upgrade a railway line connecting Oxford, Milton Keynes and Bedford.

The move could make Oxford “the centre of the UK rail universe outside of London”, it has been claimed.

The ambitious plan has stalled several times since 1995 when the East West Rail Consortium (EWRC) was formed through lack of funding.

But now proposals are taking shape for the consortium of councils in each county set to split a £50m bill, a 10th of the estimated £500m scheme.

Oxfordshire has been asked to contribute £20.04m, the largest share. County council deputy leader Rodney Rose said even though the county would pay more the sum was fair.

Mr Rose said: “It will be worth more than £20m to Oxford alone.

“It will make us the centre of the rail universe outside of London and is definitely value for money.

“That £20m will be returned back into the economy with ease, and will make Oxford one of the country’s most important rail centres.”

Buckinghamshire County Council would pay £15.52m, and Milton Keynes, Bedford and Central Bedfordshire £14.35m.

The Department for Transport agreed that the money could be paid over 15 years from 2014-15.

Buckinghamshire County Council offered to take the lead and calculated the split based on census and potential gain.

The councils have suggested using developer contributions to fund it, though the exact details have not been finalised.

Mr Rose said he expected a paper before County Hall’s ruling cabinet “imminently”, and was due to meet colleagues on August 15 to discuss the matter.

Labour leader and leader of the opposition Liz Brighouse said the council should not raid the public purse for funding.

She said: “Don’t get me wrong, I think this is needed but this money must not come from the public.

“If developers want to pay for it then that is fine but this council needs to be very careful given this is investment in the private sector.”

Oxfordshire passenger groups say they are pleased with the promise of funding but are wary of “empty promises”.

Dr Ian East, chairman of Oxford-Bicester Rail Action group, said: “It’s good news in theory but a lot of people will still be sceptical.

“We welcome any advancement but there still seems a lack of commitment given that planners and businesses seemingly want this more than the Government.”

Railfuture Thames Valley spokesman Hugh Jaeger added: “We are jumping for joy at the news but we need a date and time of that first train.

“Whatever your political persuasion this should be something to back as it will open Oxford to everywhere.”

Department for Transport spokesman Sam Bond said: “Local contributions have been part of this scheme since its initial proposal in November 2011.

“There will be huge local benefits from the new railway, providing new services and generating jobs and growth.”

Network Rail spokeswoman Sam Kelly added: “The new link is expected to open at the end of 2017.

“Network Rail will deliver the work including new track and signalling.

“It will remove traffic from already congested roads and enhance connections to major centres of economic activity and growth including Oxford and Bicester.”