There is absolutely no more government cash for Games, says Jowell

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The Olympics minister told the BBC that the £9.3 billion budget would not be increased and that if any extra cash was needed, it would have to be cut from other parts of the games.

Boris Johnson has backed Ms Jowell's tough line, claiming that "sensible savings"-can be found. But the Mayor also insisted that the London Olympics would not turn into an "austerity games".

The National Audit Office has warned that spending on the Games may rise further, from an original figure of £4 billion, because of uncertainty over the costs of security and unsigned construction contracts. But Ms Jowell told the BBC: "Within the overall ceiling of £9.325 billion there's no more money."

Asked if she was confident the project could be completed within budget, she added: "The budget cannot be exceeded because there is no more money.

"I don't think anybody on the London Olympic team is remotely intimidated by what the Chinese have done. Wonderful though it is we are going to put on something just as fine.

"If we have to find more money for a particular aspect of the programme, then savings will have to be made."

Mr Johnson added: "We will come in on budget and we will not waste taxpayers' money."

Further London 2012 funding worriesemerged today when ex-prime minister Sir John Major warned future British Olympic success would be jeopardised if Lottery funding for grassroots sport was cut.

Sir John, who introduced National Lottery funding for athletes, said organisations such as Sport England were being forced to make budget cuts as Lottery money is diverted to other projects.