Sea defence campaigners have branded Natural England's (NE) policies 'crazy' as the final touches are being made to the Pagham to East Head draft coastal defence strategy.
The Environment Agency (EA) is just weeks away from releasing the final plans for the draft strategy.
But Save Our Selsey (SOS) campaigners fear the EA is being 'restrained' by NE.
SOS also believes the proposals to protect the town are still a
n 'expensive wish list', despite new plans to protect the north of the town being put forward.
"We're disappointed a strong, clear case to protect Medmerry Cliffs has not been made," said SOS chairman Richard Dearsley.
"The NE policy is to let such cliffs erode, to ensure fresh 'exposure' of the geology – even if this means homes and businesses are lost as a result, and that ultimately the cliffs disappear.
"We think this is crazy and the EA should be free to suggest a policy that defends property and preserves the cliffs.
"We hope the EA is given the opportunity in the final stages of the strategy to do this."
The EA predicted that 2,200 homes and businesses would be lost to the sea if nothing was done to protect homes along the coastline over the next century.
More than 1,000 residents attended four exhibitions as part of a two-month public consultation starting from May 29. Residents could view coastal defence plans and speak with EA staff.
Those who responded to the plans have received a newsletter at their home outlining changes made to the draft coastal defence strategy. SOS believes creativity will be needed to find ways of funding essential coast defences.
Mr Dearsley added: "Unless we can get the money to pay for coast defences, nothing will be done.
"The agency says that government funding for Selsey's urban frontages, such as the existing sea wall, is unlikely and it could be down to 'local community funding'.
"To defend urban Selsey over the next 100 years with the strategy estimated we would need a fund of £30m-£40m set aside. Coast defence is a government responsibility and local people should not be left to pick up the tab."
Jon Curson, NE coastal policy advisor for the south east region, said: "We are responsible for looking after designated sites and Medmerry Cliffs is one of them. We have worked very closely with the EA in producing this strategy and we were satisfied with the strategy in its draft form.
"It provides adequate protection for Selsey. I would not agree we have hampered the EA in its decisions."
Chichester District Council is to meet on November 25 to review the plans.
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