The London Assembly has launched an investigation into the probable impact and management of diverting Lottery funding from projects in the capital to help pay for the 2012 Games.

Lottery funding for the 2012 Games was initially costed at £1.5bn, but in March this allocation was increased by an additional £675m to £2.2bn – a redirection of 20 per cent of Lottery proceeds destined for other causes from 2005–2012.

Chair of the assembly’s economic development, culture, sport and tourism committee, Dee Doocey, said: “We welcome the many opportunities the Olympics will bring, but we also want to make sure organisations in London continue to receive their fair share of Lottery funding, and that any cuts are applied transparently.

“Now that Lottery distributors have been asked to contribute more to the Games than they originally expected to, we want to look at how this might impact on good causes in the capital that depend on this funding, including the arts, film, heritage, culture and sport.”

The committee will chart the likely impact on London, borough-by-borough, in consultation with key stakeholders such as the Mayor of London, Lottery distributors, campaign groups and Lottery-funded institutions.

The findings will be published early next year.