The London police force has placed a 拢1.4bn seven-year building programme under review as a result of changing market conditions, fuelling concerns that public spending will not be immune to the recession.

The Metropolitan Police Authority (MPA) 鈥� the independent body that oversees the city鈥檚 police 鈥� said it was reviewing a scheme to improve police stations across London.

It said: 鈥淚n the light of the position of the financial and property markets, the service is reviewing its seven-year capital programme. A report is expected in spring 2009.鈥�

London Police

The organisation, which had 拢30m of deposits in a collapsed bank in Iceland, said budgets were becoming 鈥渋ncreasingly tight鈥�. It said projects under way would continue, but long-term schemes would be re-assessed.

A budget of about 拢1.2bn was proposed for the Met鈥檚 capital works programme, which was increased to 拢1.4bn last November.

The bulk of the money was understood to be earmarked for building projects. Firms working for the Met include EC Harris, McBains Cooper and Davis Langdon.

The worry is this will be replicated elsewhere

Source close to programme

Olympic security costs are also covered by the spending plan, but the MPA said this would not be affected.

The news has raised questions about the government鈥檚 promise to spend its way out of the financial crisis.

A consultant close to the programme said: 鈥淭he worry is this will be replicated elsewhere. The chances are other police forces have similar problems.鈥�

The MPA also admitted to problems with a consultation earlier this year on plans to modernise police facilities. Steve O鈥機onnell, chairman of the body鈥檚 finance and resources committee, said: 鈥淭hese well-intentioned plans were poorly presented.鈥�