Concerns have been raised by a House of Commons committee over the "worrying" position of the budget for delivering the 2012 Olympics in London.

The public accounts committee (PAC) revealed that, although it was encouraged by progress on construction projects, contingency funds had been left with "only £194m headroom" by unforeseen problems. According to the committee, the majority of the remaining £1.27bn of the £2.747bn contingency fund has been earmarked for "known risks" and may not be able to cover any unplanned work that is required.

PAC chair Edward Leigh said: "Of the sum left within the Olympic budget for contingencies, £1.27m, most is currently earmarked for known risks. But unforeseen problems continue to emerge to place fresh demands on the contingency. As we have seen, the economic downturn has already led to the Olympic Village and Media Centre having to be funded by the taxpayer. And the unplanned work to secure and maintain the Olympic Park after construction could require a further £160m of the contingency."

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