The cuts, announced as part of an overall package of £88 million ($126 million) cuts that also affect Government agencies UK Sport, Sport England and the new UK Anti-Doping (UKAD), have been agreed by the Treasury with the Department for Culture, Media and Sport (DCMS), which is also cutting its own budget by three per cent.

The belt-tightening measures will see savings of £61 milion ($87 million) from the DCMS sector, including UK Sport, Sport England and UKAD, and a total of £88 million ($126 million) with the Olympic money included.

The cuts were announced by new Chancellor George Osborne, who has today made £6.2 billion ($8.8 billion) of public spending cuts.

UK Sport, Sport England and UKADA will also have cuts of three per cent from their budgets but the Secretary of State for Culture, Media and Sport, has told the bodies that the savings should not interrupt the Olympic programme and that frontline services should be protected.

The main savings should come from cutting administration costs and restrictions on recruitment and pay.

London 2012 officials privately feared that they would suffer even bigger cuts.

When compared to the £9.3 billion ($13.3 billion) cost of the project or the huge cuts being made to other Government departments, it is a relatively insignificant sum.

Armitt said he was sure the ODA could make the savings could be made without affecting the programme because it has been run so efficiently since it was set-up in 2005 after London were awarded the Olympics and Paralympics.

He said: "Due to strong financial management and cost control to date the project is on a sound economic footing and I am confident that the ODA will be able to save £27 million ($38 million) from our budget 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.

"This is possible due to the efficient way that they project has been managed.

"Our regular budget updates have consistently shown that we are on schedule and within budget with savings of around £600 million ($860 million) already delivered to keep us on track."

Sebastian Coe, the chairman of London 2012, also claimed to be unconcerned about the cuts.

He said: "The project is in very, very good shape.

"If you look at the regeneration that project is inspiring in east London, that's pretty much done.

"We've got venues that are going to be completed this time next year.

"The Organising Committee, which is what I chair, raises all its money from the private sector and we have done that in record sums.

I think we understand the landscape that everyone is living in, these are very difficult times.

"But I'm confident that these Games will be delivered in a way that makes everybody, wherever they live in the United Kingdom, proud."

Contact the writer of this story at [email protected]


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