The Olympics minister yesterday admitted that two of the biggest games venues still had no financial backing from their developers and that 'this is not a good time to pursue private sector investment'.

Organisers had not given up hope of raising private sector finance for the £900m Olympic village and £400m media centre, Tessa Jowell told MPs, but they did not rule out the prospect of the government bailing them out for the 2012 event.

Lend Lease, the Australian developer, has begun work on the Olympic Village but has been unable to obtain bank lending for its contribution. That has required the Olympic Delivery Authority, the body responsible for games construction projects, to draw down £95m from £1bn of government contingency.

Work on the media centre needs to begin in the spring, but its location has yet to be finalised.

Financial Times