Olympic Village expected to take more cash from contingency fund

The government is today expected to pave the way for the complete nationalisation of the £900m Olympic village after developer Lend Lease failed to raise its share of the cash.

In a quarterly update on the Olympic budget, ministers are set to indicate that the recession has hampered attempts to raise private finance for the project.

The latest figures from the Government Olympic Executive are expected to show a £300m shortfall in funding for the Village, according to the London Evening Standard.

The Olympic Delivery Authority has already used £236m from its contingency cash to fund the Village, with a further £268m provided from a loan from the European Investment Bank.

The progress report will be presented later today by the Olympic auditor David Goldstone and ODA chief executive David Higgins.