A LARGE slice of a £115m flooding relief grant from Europe should come to Oxfordshire, it is claimed today.

The European money will be shared by areas of Britain worst hit by the summer floods.

But with the European Commission ready to distribute millions next year, the fight has already begun to secure "a significant" sum for Oxfordshire and the Thames Valley.

James Elles, MEP for the South East, said the share-out should reflect the seriousness of the flooding in the county.

He said: "Whilst Gloucestershire and parts of the North of England were seriously flooded, the Thames Valley bore the brunt of the flooding in the South East. Across Oxfordshire more than 2,600 homes were flooded."

The European money will go towards reimbursing the cost of emergency measures such as rescue services, cleaning up after flood damage and restoring basic infrastructure.

News of the grant came as the Audit Commission published a report warning that some councils may be unable to cope with a second flooding disaster.

The commission strongly supported calls from Oxfordshire councils for a review of how Government assistance is targeted.

And it warns: "Local authorities were able to cope this time. But if there was another serious flood tomorrow, some wouldn't have enough money in reserve."

The final decision about how the European money will be shared out will be made by the Treasury.

But despite the strong claims of cities like Hull and Sheffield, which incurred massive losses, Mr Elles said he was confident some of the millions would be destined for Oxfordshire.

He said: "I do not see a problem for Oxfordshire to be able to benefit significantly from this decision. The Thames Valley was the area most hit in the South East region and Oxfordshire was a major part of that. Logically speaking, much of the funds should be destined for Oxfordshire.

"Through no fault of their own, councils are out of pocket to the tune of millions of pounds at a time when their budgets are being strained by other pressures."

Oxfordshire County Council this week said it would use £2.5m of its £17m reserve to pay towards the cost of flooding.

The European Commission proposal to amend its budget has now to be agreed by the Budget Authority.

Charles Shouler, the county council cabinet member for finance, said: "We knew that the money from Europe was a possibility. But we have no idea how it will be divided."

The county council, along with Oxford city, the Vale of White Horse and West Oxfordshire were among 18 authorities to take part in the Audit Commission report.

The study says assistance to flood-hit areas from central government was poorly targeted and failed to provide value for money.

It adds: "The Audit Commission warns that the current lack of clarity about central government financial support could lead individual local authorities either to under-insure their assets, putting council tax payers and services at risk, or to over-insure them and waste public money."

The study was published today as the Oxford Flood Alliance was being launched in a bid to give thousands of residents across the city a stronger voice.

The new pressure group says it will fight for speedier measures to protect residents in Binsey, Botley Road, Osney Island, Wolvercote, Wytham, South Hinksey and Abingdon Road.

With a new Environment Agency report holding out no hope of a £150m flood defence scheme for the city being constructed before 2015, if at all, the newly-formed Oxford Flood Alliance will press for more immediate measures than a massive flood relief channel.

One of the forum's first acts has been to write to the Environment Agency to express "dismay, verging on disbelief" about plans to reduce staffing levels on the locks during the winter and the sale of the lock-side houses.