London 2012: Olympics and Paralympics £377m under budget

The cost of the London Olympics and Paralympics will be £377m less than expected, according to the government.

The combined budget for the two events was £9.29bn, but the projected cost is £8.92bn.

Savings came from a drop in security, transport and construction expenses.

Sports minister Hugh Robertson said: "London 2012 was a tremendous success and it is a significant achievement to deliver this large and complex programme on time and under budget."

Analysis

Image of Gordon Farquhar Gordon Farquhar BBC sports news correspondent

"The government has confirmed that Locog, which was set up as a public company, received around £1bn of public funding to stage the Games. It said this money was primarily used to pay contractors' fees, particularly connected to security. Locog is expected to publish its budget in full in March. At present, the expectation is that it will break even."

Another £103m from a contingency fund was also left unspent, meaning a total of £480m still remains from the original budget - which was set in 2007 and was almost four times the estimated cost at the time London bid in 2005.

The government said this money will cover "risks" linked to the revamping of the Olympic Park.

The figures are from the government's final quarterly economic report.

With some London 2012 contracts still to be wound up, ministers have described the underspend as a "prudent" estimate.

Robertson added: "The work of the construction and delivery teams, from the ODA [Olympic Delivery Authority] and Locog [London Organising Committee of the Olympic and Paralympic Games], has set a very high standard.

"I have no doubt that London 2012 has set a new benchmark for the management of Olympic and Paralympic Games in future."

The ODA is now transforming the apartments in the Olympic Village into thousands of new homes, removing partitions and fitting kitchens.

It is also returning temporary Games venues to their previous use and owners.

ODA chief executive Dennis Hone said: "We are delighted the venues and infrastructure that we were responsible for delivering proved to be such a big hit and provided an incredible stage and backdrop for the world's greatest sporting event."

The budget set in 2007 was almost four times the estimated cost at the time London bid in 2005.

It was revised upwards after taking into account previously overlooked costs such as VAT, increased security costs, and an expanded brief for the ODA to regenerate the lower Lea Valley area.