Oxford has missed out on £4m of Government funding which would have improved the safety for the city's cyclists.
Oxfordshire County Council had been planning to remove accident blackspots and upgrade the most dangerous sections of the cycling network by securing a seven-figure grant from Cycling England.
However, last night it was suggested that improvement works to blackspots like The Plain roundabout, Botley Road and Frideswide Square could face major delays as Cycling England will not take any new bids for funding until 2011.
Cycling campaigners said Oxford lost out because of Oxfordshire County Council's failure to do enough to promote cycling - but the authority said it was "utterly wrong" to suggest it did not care about those on cycles.
Out of 74 local councils that applied for funding, 19 have been shortlisted to become English Cycle Demonstration Towns - including Cambridge, Milton Keynes and Weston-super-Mare.
Last night campaigners claimed County Hall's poor record on maintaining cycle paths meant it failed in its bid to become one of the pioneer towns.
Ed Lehmann, who represents the Cycle Touring Club's Right to Ride campaign in the region, said: "Losing the money is a real blow for Oxford.
"I think the county council's record on cycling has led to this decision.
"The Botley Road cycle path is a joke and there's no doubt the state of the network is deterring people from cycling on our roads.
"Who can blame the Government for this decision? You don't give big pots of cash to people who haven't shown care and competence for cyclists in the past.
"The council has missed the boat for a few years now - and they need to realise they have messed up and get their act together for next time."
County Hall made its application for the funding just three weeks ago and was backed by both universities and rail operator First Great Western.
James Styring, chairman of Oxford's cycling pressure group Cyclox, said: "A lot of cyclists will be disappointed by the news.
"Many people cycle in Oxford and a lot of work needs to be done to bring the network up to scratch.
"Inevitably, some of the plans that were talked about for improving cycling in Oxford won't now happen, but we need to make sure the council stays focused on cycling and providing better facilities for cyclists.
"There finally seems to be an apparent commitment at the county council to do something about cycling in the city and they will have to work out how they are going to rework their plans to improve the network."
The council said it had £440,000 of funding set aside for cycling schemes in Oxford over the next two years and had installed new crossings in Headley Way and Marston Road, to improve the Headington cycle route and the Thames towpath between Donnington and Folly Bridge.
Owen South, Oxfordshire's senior transport planner, said: "In Oxford we are continuing to invest and are planning a number of schemes to improve the continuity and visibility of the cycle network.
"It is plainly utterly wrong to say the council does not care about cycling and we reject such comments out of hand."
Cycling England, a publicly-funded body, refused to say why Oxford had been unsuccessful in its bid to become a Cycling Demonstration Town.
Recently, County Hall earmarked £100,000 for a feasibility study of a Paris-style cycle hire scheme for the city.
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