• London 2012

Olympics chiefs bullish in face of cuts

Lord Sebastian Coe is upbeat despite facing budget cuts © Getty Images

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Lord Sebastian Coe is confident the preparations for the London Olympics will not be hit by the budget cuts imposed by the new coalition government.

Chancellor George Osborne announced £6.2 billion worth of public spending cuts on Monday, with the Olympic Delivery Authority being told to make cuts of £27 million.

Many expected the cuts to be even greater, and Coe believes the Games will still be delivered on time, and crucially within the new budget.

"The project is in very, very good shape," said Coe. "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."

Administration costs are expected to be cut, with recruitment and salaries also affected. But ODA chairman John Armitt insists stringent budgeting from the outset has left the project in good stead to survive the setback.

"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."

UK Sport, meanwhile, is facing cuts of £1.7 million. A UK Sport spokesperson told The Times: "We will look to make these savings without compromising our direct support for the preparation of Britain's elite sports during this crucial period."

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