Warning over London 2012 legacy

A think-tank has called on the government to put in place "cast-iron guarantees" to ensure a legacy for London's 2012 Olympic Games.

In a report published on Monday, the New Economics Foundation and Community Links said the Olympics could help regenerate the deprived Lower Lea Valley Area.

But it warned that the "trickle down" economics would mean that London was hit particularly badly by the global credit crunch.

It said that small businesses would be unable to compete and that local people would be priced out of the housing market.

"Urgent action must be taken to prevent the communities of east London being trampled in the Olympic gold rush," said co-author Josh Ryan-Collins.

"The regeneration legacy was not just an enlightened addition to the Games' plan which would be good to achieve if possible.

"It was central to London's original Olympics bid. Promises and undertakings were made in the bid on behalf of the city and the nation; these must be achieved if we are all to keep faith with the assurances made to the world on our behalf."