New figures from the government and the Olympic Delivery Authority (ODA) have shown that the London 2012 Olympic and Paralympic Games will be delivered on time and on budget.

The London 2012 Olympic and Paralympic Games Quarterly Economic Report has seen a £7m increase in the cost of the ODA's construction programme, which equates to an increase of less than 0.1 per cent. However, nothing from the £1.27bn contingency funding has been required to cover the increase due to savings achieved elsewhere as part of ongoing construction of the 2012 venues at the Olympic Park site.

Changes in the anticipated final cost of the London Games include savings made on site, the potential need to improve local sports facilities as training venues, increased costs associated with vehicle screening and potential cost pressures on Olympic Village and Stratford City infrastructure projects. Olympics minister Tessa Jowell said: "This report shows we are still on time and still on budget. Every day the Olympic Park changes a little bit more, confirming the huge progress that the Olympic Delivery Authority and its contractors are making in building the venues and infrastructure that will be so familiar in less than three years time.

"At each and every stage the building programme is good news for London, and good for Britain - helping the UK come through the recession now, showcasing our construction and design skills and leaving behind a long-term legacy of new facilities and a new urban park in a transformed east London." ODA chair John Armitt added: "There is no cause for complacency. Next year is set to be our toughest yet as activity on site reaches a peak and it is essential we maintain our momentum."

Image: Anthony Charlton/ODA