A key partner on a major flood defence project in Southampton insists it will be ready to restart the scheme once there is a “realistic prospect” of full funding.

The Environment Agency took the decision to withdraw its existing allocation for the River Itchen Flood Alleviation Scheme (RIFAS) in March.

This move, which was announced by Southampton City Council last week, led to the project being halted before a spade had gone in the ground.

The local authority said it remained committed to delivering the scheme despite the economic challenges.

Most recent estimates suggest the proposals for the 2.2-mile stretch along the west bank of the river would cost £96.7million.

The Environment Agency’s decision added to the challenge of an identified funding shortfall of more than £50 million, which had grown through rising inflation, design changes and cost increases.

The local authority is the investment lead for the project but to date it has not been able to secure any significant additional external contributions to plug the financial gap.

A pause on the project will remain in place until the level of government funding available increases or external investment is secured.

An Environment Agency spokesperson told the Local Democracy Reporting Service: “We have been working in partnership with Southampton City Council since 2019 to try and find an affordable approach to protecting the western shore of the River Itchen.

“Unfortunately, there is insufficient funding to progress the scheme at this time and the partners took the difficult decision to pause the scheme.

“We will continue to work with and support Southampton City Council and will be ready to restart the scheme when there is a realistic prospect that it can be fully funded.”

The project would cover the waterfront from Mount Pleasant Industrial Estate in the north, down to Southampton Water Activities Centre to the south of Itchen Bridge.

Around 150 homes and 250 businesses are currently at risk of flooding in this area, the council said.

The halt to the scheme was raised at the full council meeting on Wednesday, May 14, by Liberal Democrat group leader Cllr Richard Blackman, who said it was a “setback for the city’s economic development and the protection and safety of the city”.

Cabinet member for environment and transport Cllr Eamonn Keogh said the Environment Agency took its decision as it wanted to support other schemes around the country that were ready to go.

Deputy leader Cllr Simon Letts encouraged all political group leaders to write to the relevant government minister to make the case for the city to receive the funding it needs.