Boris to bail out Olympic village

London’s mayor Boris Johnson is planning to raid government coffers to bail out the London 2012 Olympic village.

The mayor is planning to divert public funds available for affordable housing to help fund the project, which has been dogged by finance problems.

Developer Lend Lease has struggled to raise enough cash for the job as banks have restricted lending in the face of the credit crunch.

The Evening Standard reported that Johnson would make his first significant intervention on the project after being warned by his Games advisor David Ross of a “major risk”.

The money will come from the Homes and Communities Agency.

In a report on the Games, Ross raised concerns over the village’s financial arrangements, criticised a lack of legacy planning and blasted long delays on finalising security arrangements.

His report estimated the cost of the main stadium was now £525m – a jump of £29m in 12 months.