£60m black hole identified in LDA's Olympic budget

A shortfall of up to £60m in the London Development Agency’s Olympic Legacy Directorate budget has been identified by auditor KPMG.

The funds cover payments to landowners who were relocated to make way for the Olympic Park.

The LDA may have to delay infrastructure and enterprise projects as it bids to plug the shortfall, according to EGI.

The directorate is responsible for assembly of the 340ha Lower Lea Valley site.

So far, the body has paid more than £750m to assemble the site. However, 72 of the 193 firms relocated are still in negotiations over the level of compensation they will receive.

A spokesperson for the directorate said: "An internal review at the LDA, which is ongoing, has identified some additional spending commitments and has adjusted budgets to accommodate it. No additional overall borrowing is needed and 2009 expenditure is accounted for."

• More planning news from EGI.