Cost of the 2012 Olympic Games could soar

Londoners were warned they could end up paying much more for the Olympics after the new Culture Secretary admitted the 2012 Games would not be protected from spending cuts.

Jeremy Hunt, the Cabinet minister with responsibility for the Olympics, said that his overall department faced a £66 million squeeze and he had already asked civil servants for savings.

Mr Hunt told BBC2's Newsnight that the Olympics was "not protected" from efficiency savings that would have to be enacted to cut the nation's deficit.

But his remarks triggered alarm among some 2012 staff and Labour seized on the fact that any cut in the Government's contribution would inevitably lead to a rise in Londoners' bills.

Former Olympics minister Tessa Jowell and ex-Mayor Ken Livingstone secured a deal that residents in the capital would pay no more than 38p a week towards the games, paid through their council tax precept. The rest of the £9 billion cost is being met through a mixture of contributions from government and business.

Ms Jowell said: "We made a very clear commitment about the level of London's contribution. There are enormous risks in doing anything that destabilises the current arrangements."

But Mr Hunt said "the Olympics is our number one priority".