Anti-incinerator campaigners claim that the Government has decided not to put any money towards Gloucestershire's scheme because it isn't needed.
Gloucestershire County Council and waste firm Urbaser Balfour Beatty's £500million burner could be built at Haresfield if given permission.
The council confirmed it would not be receiving any funding from the Department for Farming and Rural Affairs (Defra).
But councillor Stan Waddington, cabinet project champion for the waste project, said: "Funding was withdrawn from many residual waste projects as part of national spending cuts.
"An independent planning inspector has assessed Gloucestershire's plans for dealing with our rubbish and that included looking at capacity issues."