PLEAS for Government money to help Oxfordshire meet the cost of July's floods look to have fallen on deaf ears.

The message from the Government is that 'the cheque is not in the post', county councillors were told this week.

A joint appeal from council leaders across Oxfordshire called on the Government to fulfil an apparent promise to reimburse flood-ravaged areas.

County Hall says it is £3.3m out of pocket after July's floods damaged roads, bridges and schools. Costs were also incurred by the fire and rescue service and the emergency planning and highways teams.

But the Government has now told the people of Oxfordshire that they will have to pick up the bill themselves.

Oxfordshire County Council leader Keith Mitchell said the four-page response from Communities Secretary Hazel Blears could be summed up in seven words: "The cheque is not in the post."

He said: "We have received a response from Hazel Blears. It did not come with a cheque or the promise of a cheque. Quite the reverse.

"The minister said that Government funding support was 'intended to assist local authorities meet the cost rather than covering overall costs incurred'. This sounds as if the Government has at least made a significant contribution in helping us pay the bills. It has not.

"We are still more than £3m out of pocket. We are embarking on our budget process for 2008/9 at the moment. The one thing we are determined about is that this will have no impact on council tax rises and as limited an impact on services as possible."

But the Government U-turn will have far-reaching implications - and projects including school and road improvements could be delayed to help pay for the recovery effort.

Mr Mitchell said the Government was arguing that Oxfordshire councils' costs had not met the Government threshold for compensation.

Cash reserves were being used to cover the costs but Mr Mitchell feared that money would have to be repaid.

He said: "Some capital schemes will probably have to be put off for a year or two. Schools schemes or road schemes, anything big we do like that."

Oxford City Council leader John Goddard said he could see little good news in the letter.

And he was angry the Government had not honoured its pledge.

He said: "That was all said in the first flush of enthusiasm whilst the flooding was still on, but they have not delivered."

The net cost to the combined county and district councils is expected to be well in excess of £4m, of which less than £1m will be recoverable from insurers.

Councils are also bracing themselves for significant increases in future insurance payments.

Hazel Blears's reply suggests the Oxfordshire council leaders' hopes may have been based on a misunderstanding. She wrote: "It is not Government policy to fund local authorities in this way and I am sorry if there has been any misunderstanding."

The county's district councils did receive a total flood recovery grant of £861,000 - but that was specifically aimed at helping residents in need.