Preparations for the 2012 London Games remain on course despite the government's decision to reduce the Olympic Delivery Authority's (ODA) budget as part of wider efforts to reduce public spending.

Organisers have confirmed that £27m worth of savings have been made in areas including construction site security and the media venues, as well as smaller alterations to the Basketball Arena and Velodrome. The latest London 2012 Olympic and Paralympic Quarterly Economic Report also revealed that the Games' anticipated final cost has been cut by £6m to £7.261bn, compared with last month.

According to the ODA, more than £100m has now been saved during the last quarter and around £700m since the baseline budget was agreed in November 2007, which have helped offset increases in other areas. Hugh Robertson, minister for sport and the Olympics, said: "This report shows they have delivered £27m of savings as part of the government's measures for reducing the deficit while keeping the whole Olympic programme intact.

"It also shows that the anticipated final cost remains stable despite the impact of the forthcoming VAT and tax increases. Given we are halfway through the most complex year in construction terms, this shows just how well this project is being run." ODA chief executive David Higgins added: "We have made a total of £700m savings in this way, most recently absorbing both the agreed £27m reduction in the ODA's budget and the impact of the Emergency Budget.

"We will continue to bear down on costs wherever possible whilst ensuring we deliver what is required for both a fantastic Games in 2012 and a lasting legacy afterwards." Image: Tom Last/ODA