The city's transport system has received a hammerblow after it emerged the county council’s £62 million for the Access to Oxford has not been given funding by the Government.

In 2007 Oxfordshire County Council had been told the cash had been allocated in the South East Regional Transport Board's 2011-16 funding programme.

However, the cash has been in doubt since the Regional Transport Board was abolished by the coalition Government in June 2010.

Councillor Ian Hudspeth, the council’s cabinet member for growth and infrastructure, said: "This is bitterly disappointing news. Having initially secured funding we have now become victims of the nation's financial woes and the Government's efforts to resolve them.

"It does feel a little as if we are back to square one in terms of funding, however we must retain our ambitions and push our case to central government at any and every opportunity.”