The National Audit Office (NAO) has warned there is a "real risk" that more public money may be needed in order to fund next summer's Olympic and Paralympic Games in London.

In its latest progress report into the 2012 Games, the NAO found nearly the entire £9.298bn public sector budget would be required, with little scope to cover any unforeseen costs.

The report welcomed the "good progress" in almost all main areas but identified challenges relating to the provision of security and "some elements" of transport planning.

NAO head Amyas Morse said: "The programme to deliver the venues and infrastructure for the 2012 Games remains on course, so it looks as if value for money will be achieved in this area.

"But, in my view, the likelihood that the Games can still be funded within the existing £9.3bn public sector funding package is so finely balanced that there is a real risk more money will be needed."

The publication of the NAO report comes after the government's own study into preparations found that the 2012 Games would be delivered "on time and within budget".

However, the government has allocated an additional £271m towards security costs, with the NAO putting the latest estimate of taxpayer contributions in this area at £553m.

Details: www.nao.org.uk

Image: Anthony Charlton/ODA