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Enlarge PhotoA general view shows the 2012 Olympic stadium under construction in east London November 3,... London's Olympic organisers said on Thursday they were confident of meeting cuts imposed this year without affecting the quality or scope of the 2012 Games and its legacy, but warned of future cost pressures.A total of 27 million pounds ($39.1 million) savings announced this week form part of the new government's overall 6.2 billion pounds of spending cuts, a first step to tackle the country's record national budget deficit.
The Olympic Delivery Authority (ODA), responsible for the build, has made 600 million pounds of savings since 2007, helping it to stay within its 8.1 billion pound budget.
The government's latest quarterly report showed 130 million pounds of potential savings had been achieved through transport and infrastructure efficiencies.
But the report also showed the ODA's anticipated final cost rose by 5 million pounds to 7.267 billion pounds since the last report, largely because of the potential cost of operating the priority Olympic road system, and infrastructure costs associated with the Olympic Village and surroundings.
Olympics minister Hugh Robertson said some headroom could be found within the contingency budget, but the changing dynamics of the Games, moving away from construction to more operational work, and IOC commitments, meant there was limited scope for the government to raid the fund.
About 1.18 billion pounds of the contingency remains, with 65 percent of the venues and infrastructure completed.
London won the Olympics in 2005 under a centre-left Labour government. Labour lost power this month and has been replaced by a rare coalition between the centre-right Conservatives and the left-leaning Liberal Democrats.
He also said an Olympic security review announced last week would focus on planning rather than spending, and would not affect the safety of athletes or the public.
Details of the 27 million pounds cuts will be made in the next quarterly report.
"We are confident the 27 million was deliverable as an in-year cost and are still confident," Robertson said.
However, he added that savings might be harder to deliver as the Games draw closer.
"We are going into a much more operational phase, that will produce more challenges, probably pressures on the budget that we have not yet estimated.
"And the most damaging thing for the project moving forward would be to surrender a lump of contingency now and then have to get it back to the Treasury in 18 months time."
(Editing by Alison Wildey
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