VITAL flood defence work in a vulnerable area of York could be delayed because of a funding shortage, a leading councillor fears.

The Environment Agency has announced it wants to spend up to £2 million raising and strengthening earth flood embankments protecting hundreds of homes in the Leeman Road area, defences which came perilously close to collapsing during the floods of 2000.

The agency has said it wants to complete the plans, contained in its Ouse Flood Risk Management Strategy published last November, within five years.

But now leading York councillor Andrew Waller - the city council's representative on the Yorkshire Regional Flood Defence Committee - has said he fears the work could be done later rather than sooner, because of the agency's multi-million pound funding shortfall for 2006/7.

The agency has this year been handed £26 million less from the Government than its initial provisional budget allocation.

Coupled with millions that are set to be spent on other schemes, that means the agency is now £90 million short of its proposed expenditure.

Coun Waller said he feared the cash shortfall would mean the work to Leeman Road could face delays.

"The Environment Agency didn't give a specific timeframe," he said.

"What we'd like to see is a commitment to do it in a particular year. Then we have the confidence that they have the resources to do it."

Coun Tracey Simpson-Laing, who lives in the Leeman Road area, said: "I would hope the Environment Agency prioritises the area of most need. Considering the amount of residents with properties around here which are at a very low level, (I would hope) they would look at doing this area before other areas."

A spokeswoman for the Environment Agency said it would not be known until April whether the Leeman Road scheme would be delayed.

She said: "Our budget for flood defence is £26 million less than we were expecting. We'll work with the figure that we've got to deliver the best flood defence solution that we can."

A Defra spokeswoman said: "As a result of a need to tackle high priority local authority coastal schemes the 2006/7 allocation for the agency is less than the current year.

"The agency has been allocated £434 million for 2006/7 compared to £445 million in 2005/6. The agency will now consider its priorities for expenditure and allocate funds as appropriate to its regions.

"The Government remains committed to the programme and will be spending around £570 million in total for each of the next two years."

Updated: 08:46 Saturday, January 14, 2006