Announcement expected on athletes' village to assist developer Lend Lease with further funding

The government has declined to comment on reports it is in discussions over releasing further contingency funds to pay for construction of the Olympic village.

Quarterly 2012 budget figures are to be released by the Department for Culture, Media and Sport this afternoon, and ministers are thought to be preparing an announcement on funding for the 拢1bn athletes' village.

London 2012 Olympic Village during construction March 2009
Work proceeding on the Olympic village earlier this year

The government has already allocated 拢326m from the contingency pot to the village after developer Lend Lease failed to raise the necessary private investment. Any further raid on funds would have to be approved by a committee chaired by UK chancellor Alistair Darling.

In total, 拢1.2bn of the 拢2.7bn Olympic back-up fund has so far been allocated.

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