Lewes flood victims will receive no new defences for at least three years, the Government announced yesterday.
Environment minister Elliot Morley said the Cliffe area of the town did not qualify for flood protection funding.
The Government has previously blamed delays on "technical issues" such as the various ownerships of the town's walls.
But, in a written statement to Parliament yesterday, Mr Morley indicated that work would not take place for at least three more years.
He said: "The Environment Agency consider the Cliffe cell in Lewes is unlikely to qualify for funding for at least the next three years as the assessed priority score for the scheme is below the current score."
MP Norman Baker, who has been demanding new defences since the town was ravaged by floods in 2000, was furious.
He said: "The Government had a wake-up call in 2000 with regard to the problem of flooding in Lewes.
"Yet it now appears they have been able to go blissfully back to sleep on this issue without implementing the necessary measures to allow the people of Lewes to sleep easily."
Mr Baker said that the Association of British Insurers had recently highlighted the growing flood risk faced by Lewes households.
He said: "We will be working together to put pressure on the Government to honour its commitment to provide proper flood defences for the town.
"It is outrageous that there is no money to spend on flood defences in Lewes.
"The threat of possible flooding in Lewes continues to be very serious and is not a problem that will disappear, unlike the Government's promises, sadly."
The devastating Lewes floods happened exactly five years ago yesterday, the same day the Government announced the delay to flood defences.
Maureen Messer, 72, chairwoman of Lewes Flood Action Group, said: "I am not only furious and angry, I feel that Lewes has been betrayed.
"The Government has lied through its teeth.
"They have money for everything else - five years and we are still waiting."
While works to defend housing at Malling Brooks have been completed, the Cliffe cell faces years of delays.
The Environment Agency said Malling Brooks is the area of Lewes that has the largest risk because it is so bowl shaped.
About £1.7 million has been spent on undertaking work in the area, offering protection to 250 residential properties and 50 commercial buildings.
The historic town of Lewes hit the national news when it was devastated by floods when it suffered the worst floods in 40 years when the River Ouse burst its banks.
More than 400 homes and almost 200 businesses were wrecked by the floodwater and some people were left homeless for weeks.
Other residents took two years to get their homes restored to their original state.
Mrs Messer said: "They have let Lewes down right, left and centre. It's all promises, promises and nothing."
Residents still live in fear of a repeat of the disaster when there is prolonged rainfall.
The flood action group is preparing to raise its profile once again following yesterday's announcement.
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