The London Legacy Development Corporation could be forced to make almost £10million worth of cuts.
The mayor of London, Sadiq Khan, announced combined savings of up to £500m would need to be made across City Hall organisations, including the guardian of Queen Elizabeth Olympic Park, unless the government steps in.
Mayor Khan published his budget guidance, which provides a breakdown of the savings required across the GLA over the next two years, on Friday, June 26.
The London Legacy Development Corporation (LLDC) has targeted savings of £7.4m this financial year and £2.1m in 2021-22.
The figures assume losses of seven per cent in council tax revenues and reductions of 11pc in business rates income across the capital by March 2022.
Mayor Khan warned: “A new era of austerity will not just damage public services – but will strangle the economic recovery that we desperately need to see in order to protect as many jobs as possible.
“The GLA could lose £493million of business rates and council tax income over the next two years which would require significant cuts across the board.
“While I have prudently put aside significant sums to meet unexpected risks, the scale of the challenge is far beyond anything that any local or regional authority could have prepared for.”
An LLDC spokesperson said that as a regeneration organisation it has a big part to play in the capital’s recovery and would continue to invest in areas including skills, training and its Good Growth careers hub at Hackney Bridge.
He added: “Like organisations around the UK we are having to consider how we can make savings and efficiencies, as well as maximising our income and make every pound work as hard as possible.”
LLDC’s higher figure this year is the result of the organisation being able to make bigger savings from the London Stadium due to the cancellation of summer events with seat moves no longer needed, the spokesperson explained.
The LLDC, which was established in 2012, vowed not to let 2021/22’s cuts impacts its services or the upkeep of the park.
The spokesperson said it is essential for the corporation to do what it can to maintain connections with the communities surrounding the venue and attract increased investment.
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