Spiralling costs of the 2012 Olympics have left the government financially exposed, MPs are warning.

The plethora of bodies responsible for delivering the games threaten to stymie decision-making, the Commons Public Accounts Committee says in a report on the risk assessment and management of plans for the Olympics.

‘The truth is that the government is financially exposed,’ said Edward Leigh, committee chairman. Delivery risks have to be managed ‘with an iron hand’, but strong arrangements for monitoring progress and managing risk are not in place, he added.

Bodies responsible for the games include the London organising committee (Locog), which is in charge of staging the event, the Olympic Delivery Authority, responsible for stadiums and facilities, a 50-strong team of civil servants in the Department of Culture, Media and Sport;, and an Olympics Board, consisting of, among others, the London mayor and the chairman of the British Olympic Association.