The last serious flood in Bude was in 1999
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Plans for flood defence scheme in a Cornish town have been turned down due to lack of funding.
The £2m scheme in the Flexbury area of Bude was one of a number of flood prevention projects being considered by the Environment Agency.
The agency has announced it cannot afford to carry out the Bude work from the £28m it was granted for south west schemes over the next two years.
Schemes at St Ives, Boscastle, Padstow and Plymouth are set to continue.
A project in Truro is also under review.
The last serious flood in Bude was in 1999 when 25 properties were affected, and part of the problem was a lack of capacity in the Crooklets Stream.
The agency proposed putting in culverts and defences to prevent streams getting blocked by debris.