John Armitt, the Olympic Development Authority chairman, said this week that the government could end up funding the whole of the £1bn Olympic village, pictured, owing to the continued uncertainty over Lend Lease’s ability to provide funding.

David Higgins, the ODA chief executive, added that there would be a “substantial requirement” for additional accommodation for non-participants at the Games.

This follows the decision by the ODA to reduce the homes at the village from 4,200 to 3,000.