London England - £2.2bn emergency fund could pay for Olympic village

Ministers are considering using an “untouchable” £2.2bn emergency fund to build the troubled London 2012 Olympic village. Plans are being drawn up to rescue the project - in danger by the credit crunch and falling property prices - using an unspecified amount in the sealed contingency fund. Olympic village builder Bovis Lend Lease is struggling to raise cash to fund the £2bn project in the face of the lending crisis. The company also fears a London property crash would restrict the money it could recoup on the project.