The River Valency will be widened under the proposals

The Environment Agency says the project, which has won the backing of North Cornwall District Council, will reduce the risk of further flooding.

The scheme will involve the lowering and the widening of the River Valency, which will increase the capacity of the river when the water level is high.

A bridge will also be moved as part of the work. Construction will start in October and take two years to complete.

Car barriers

The River Valency caused millions of pounds worth of damage when it burst its banks in August 2004.

People were rescued by helicopters, homes were flooded and cars swept out to sea when about 440 million gallons of water swept through the village.

As part of the flood defences, the agency wants to demolish the existing 19th Century Lower Bridge near the harbour and replace it with a larger bridge further down stream.

Some villagers said they were not convinced just moving the bridge about 30ft (9m) away would prevent any problems.

The agency said the work would give increased protection and should reduce the risk of flooding to a one-in-75-year event.