MPs: the 2012 London Olympics chiefs are 'spending money like water'

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They are criticised for their "risible approach to cost control" which has seen the estimated bill for the event soar from £2.4billion to £9.3billion.

In a report out today, the MPs also reveal that the Games emergency fund is nearly £ 1billion higher than publicised - at £3.7billion.

And a £183million pledge to fund the legacy for grassroots sport is simply a "rebadging exercise" for projects already due to be sponsored.

The Commons Culture, Media and Sport Select Committee does praise the progress made by organisers.

But the "priority now should be to keep costs down," it said, adding: "The mark of success in financial management of the Games will be to have kept expenditure to a level comfortably below the £9.3billion ceiling."

MPs criticise the differences in initial estimates made when the London bid was submitted in 2004 and current predictions, warning that the gap has damaged public confidence.

The Olympic Stadium, which has risen from £280million to £496million, the Aquatics Centre - up from £73million to £303million - and the

Velopark, £29million to £ 80million, are singled out as the worst examples of overspend.

"In our opinion, the history of the Aquatics Centre shows a risible approach to cost control and that the Games organisers seem to be prepared to spend money like water," they said.

The Government admitted last year that the 2012 budget had jumped to £9.3billion, including a £2.7billion emergency fund.

The committee found this figure did not include a £973million provision already set aside for individual projects, meaning the total contingency fund is £3.7billion.

MPs called for a "substantial proportion" to be regarded as untouchable before 2011 and any left over to be returned to the National Lottery to boost the arts, heritage and charities.

However, there are fears last that the Government will have to plug a financial black hole to build the Olympic Village.

Olympics Minister Tessa Jowell refused to rule out a rescue package because Australian owned Bovis Lend Lease is struggling to raise money to finance the £2billion project as a result of the credit crunch.

Tory Olympics spokesman Hugh Roberston said: "Every extra pound spent on cost overruns means less money spent on sports opportunities for Britain's young people - which was the reason why we won the bid in the first place."