‘A cashflow problem’ has hit London’s Olympic Village, forcing plans for the 2012 media centre to be scaled back by £100m, according to Hackney major Jules Pipe.

The media complex, which was planned to be 1.3 m sq ft will now be shrunk by 80% and low-cost temporary buildings used.

The International Broadcast Centre, planned at 6m sq ft will now be temporary, while the permanent Main Press Centre will be halved making hopes that it would have a post 2012 legacy as a new ‘Soho’ increasingly less likely.

At an Editorial Intelligence meeting today, Hackney mayor Jules Pipe said: ‘There was 1.3 million sq ft originally envisaged for the media and broadcast centre as being permanent for legacy but if more money is not found either through the Treasury or borrowing then the physical legacy at the site in Hackney could be a fifth of what we originally envisaged.’

The credit crunch has made it difficult to secure an anchor for the site, and talks with the BBC and Bafta, among others, have not been forthcoming.