Olympics 'draining cash from museums'

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The Commons Culture committee will insist Lottery money which is being diverted to help meet the £10billion bill must be repaid after the Games.

The heritage sector is facing a loss of at least £160million in Lottery funding because of the Olympics, its report found.

The Heritage Lottery Fund told MPs it would be ' impossible' to support major projects - such as the transformation of the British Museum - as it had done in the past.

The committee will ask the Government to pledge that no more money will be diverted from heritage projects if the Olympic bill rises even further.

Culture Secretary Tessa Jowell has dismissed the fears, saying no Lottery-funded project will be affected until 2009 and that they will have first call on the profits from the sale of land after the Olympics.