London 2012 funding to be cut by 27m pounds

(Agencies)
Updated: 2010-05-25 10:20

LONDON - Funding for the London 2012 Olympics was reduced by 27 million pounds ($38.84 million) on Monday as the new British government made a round of spending cuts aimed at bringing a record public deficit under control.

The cuts to the Olympic budget, part of 6.2 billion pounds of savings across government planned for this financial year, will affect the Olympic Delivery Authority (ODA), the body which is building the venues and infrastructure for the games.

Cutting a deficit running close to 11 percent of GDP is the new coalition government's top priority.

"Given the economic position, no part of government can be immune," Sport and Olympics minister Hugh Robertson said in a statement, adding that the ODA had agreed the savings could be made without compromising the project.

Construction of the Olympic park is on time and within the 9.3 billion pound budget.

However, in March a parliamentary committee warned the London Games faced a "tight" financial situation, with only 194 million pounds available to cover any new risks in the run up to 2012.

ODA Chairman John Armitt, who is working with the Department for Culture, Media and Sport to identify where best to make the cuts, said he was confident they could be achieved this year.

"This saving will be found by continuing to make efficiencies in the way the project is delivered as we have already done in the past," he said.

"Our regular budget updates have consistently shown that we are on schedule and within budget with savings of around 600 million pounds already delivered to keep us on track."