Britain's new Chancellor George Osborne yesterday announced a series of measures designed to help reduce Britain's massive budget deficit, including cutting 25 per cent from public service spending.

But Coe promised the IOC's ruling Executive Board, that has been meeting here for the past two days, that London's budget remains on track despite the economic crisis.

Rogge said: "We know there has been a call for savings of £27 million ($38 million) and already on that budget the chairman of the ODA (Olympic Delivery Authority) said this would create no problems within the overall scope and would not diminish the quality of the Games.

"We heard a presentation by Sebastian Coe and [London 2012 chief executive] Paul Deighton and were adamant that the organising committee have good control of the budget in a difficult economic environment that started in 2007 and is still present today.

"We have head reassuring news that they have good control on the budget."

Rogge also backed London's sponsorship deal with troubled oil giant BP, which has been under the spotlight since the disaster in the Gulf of Mexico.

BP have paid £50 million ($78 million) to be a Tier One sponsor of London 2012 and earlier this year they also signed a $15 million (£9.5 million) deal to be a partner of the United States Olympic Committee (USOC).

Rogge said: "This is something to be decided by LOCOG and the USOC.

"It's not the issue of the IOC.

"I would say BP is a very strong company that has been very supportive of the sports movement for a very long time.

"I'm quite sure both LOCOG and USOC have ongoing discussions and relations with them.

"There is no problem today between BP and USOC and there is no problem today between BP and LOCOG."

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